Lloyds Metals And Energy (512455) Q4 97/98 earnings summary

Executive summary

• FY1997-98 total income was Rs. 33,558.36 lacs, down from Rs. 34,066.13 lacs; the year ended with a net loss after tax of Rs. 1,159.20 lacs versus profit of Rs. 244.99 lacs.

• Weaker margins, higher interest costs and difficult steel-market conditions weighed on results; no dividend was recommended.

Financial highlights

• Sales were Rs. 33,084.61 lacs versus Rs. 33,590.05 lacs; other income was Rs. 473.75 lacs versus Rs. 476.08 lacs.

• Profit before interest and depreciation was Rs. 2,438.54 lacs versus Rs. 3,672.10 lacs; PBT was a loss of Rs. 1,158.81 lacs versus profit of Rs. 293.99 lacs.

• Net interest expense rose to Rs. 2,230.29 lacs from Rs. 1,783.06 lacs; net loss after tax was Rs. 1,159.20 lacs versus profit of Rs. 244.99 lacs.

Outlook and guidance

• Budget changes, higher import duties and a higher landed cost for imported steel were expected to support domestic demand and improve market conditions.

• Quality improvement, better customer service and ongoing sales initiatives were intended to strengthen performance; the CRCA division expected conditions to improve under new government policy.