Lloyds Metals And Energy (512455) Q4 99/00 earnings summary

Executive summary

• FY1999-2000 sales were Rs. 12,375.95 lakh, down from Rs. 16,918.78 lakh; net loss widened to Rs. 4,581.41 lakh from Rs. 4,141.61 lakh.

• Sluggish demand, shrinking margins and working-capital constraints weakened operations; a restructuring scheme was approved by members on June 1, 2000.

Financial highlights

• Total income was Rs. 12,846.03 lakh versus Rs. 17,379.71 lakh; profit before interest and depreciation was Rs. 569.05 lakh versus Rs. 1,118.28 lakh.

• Finance charges were Rs. 3,540.46 lakh; loss before tax was Rs. 4,566.74 lakh versus Rs. 3,799.52 lakh.

• Net loss of Rs. 4,581.41 lakh included Rs. 21.40 lakh net prior-period expenses and Rs. 7.12 lakh prior-year tax provision; no dividend was recommended.

• Operating cash flow was an outflow of Rs. 2,778.95 lakh; investing cash outflow was Rs. 1,415.59 lakh, while financing cash inflow was Rs. 4,302.00 lakh.

Outlook and guidance

• Restructuring proposal: demerge the CRCA division into Encon Technologies Limited, then amalgamate the remaining business with Insco Steels Limited; members approved the scheme on June 1, 2000.

• The restructuring was intended to focus the core sponge iron and pipes operations, improve loan servicing, and strengthen access to equity and debt funding.