Lloyds Metals And Energy (512455) Q4 96/97 earnings summary

Executive summary

• FY1996-97 total income rose 43% YoY to Rs.34,066.13 lacs, while net profit fell to Rs.244.99 lacs from Rs.2,300.64 lacs amid cost pressure and higher depreciation.

• Sluggish steel markets and resource needs for ongoing projects led to no dividend recommendation, versus 20% for FY1995-96.

Financial highlights

• Sales were Rs.33,590.05 lacs versus Rs.23,678.26 lacs; other income was Rs.476.08 lacs versus Rs.199.71 lacs.

• Profit before interest and depreciation was Rs.3,672.10 lacs versus Rs.3,993.73 lacs; interest expense rose to Rs.1,783.06 lacs from Rs.951.15 lacs.

• Gross profit was Rs.1,889.04 lacs versus Rs.2,842.83 lacs; profit before tax was Rs.293.99 lacs versus Rs.2,300.64 lacs.

• Adjusted for the Rs.626.48 lacs additional depreciation charge, including Rs.172.48 lacs for earlier years, reported net profit was reduced by the same amount.

Outlook and guidance

• With improvement in the broader industrial scenario, satisfactory growth was expected in the current year; quality and customer service initiatives were underway.

• Sponge Iron Phase II was being developed to double plant capacity and add a 12 MW captive power plant.

• Pipe exports and market penetration efforts targeted the U.S.A. and South Africa, in addition to existing international markets.