M M Forgings (522241) Q4 00/01 earnings summary

Executive summary

• FY01 gross sales were Rs 6,959.42 lakh, down 1.4% YoY; PAT rose 1.7% to Rs 662.75 lakh. Recommended dividend remained 40%.

• Export sales grew 5% to Rs 4,820.11 lakh, representing 69% of total sales; capacity expansion and productivity initiatives were underway.

Financial highlights

• Revenue was Rs 6,959.42 lakh versus Rs 7,055.38 lakh in FY00; other income was Rs 22.97 lakh versus Rs 35.35 lakh.

• PBT was Rs 792.75 lakh versus Rs 737.68 lakh; PAT was Rs 662.75 lakh versus Rs 651.68 lakh.

• Domestic sales fell to Rs 2,139.31 lakh from Rs 2,456.15 lakh; export sales rose to Rs 4,820.11 lakh from Rs 4,599.23 lakh.

• Recommended dividend was 40%, totaling Rs 120.70 lakh, with dividend tax provision of Rs 12.07 lakh.

Outlook and guidance

• Capacity expansion, scheduled for March 2001, was expected to finish by August 2001; two of four additional production lines were already operating.

• Plans included ISO 9000:2000 certification and continued Total Productive Maintenance efforts toward JIPM certification.

• Continuing R&D focus was on improving productivity of steel, fuel and power inputs; indirect R&D expenditure was stated at not less than Rs 25 lakh.