M M Forgings (522241) Q4 97/98 earnings summary

Executive summary

• FY98 sales rose 3% to Rs 5,127.69 lakh and profit after tax rose 10% to Rs 419.36 lakh; a 35% dividend was recommended.

• Export growth offset weaker automotive-industry demand, supporting higher sales and profits.

Financial highlights

• Profit before tax was Rs 435.06 lakh versus Rs 382.34 lakh; profit after tax was Rs 419.36 lakh versus Rs 382.34 lakh.

• Total sales were Rs 5,127.69 lakh versus Rs 4,974.17 lakh; other income was Rs 8.70 lakh versus Rs 1.73 lakh.

• Raw-material costs fell to Rs 2,571.75 lakh from Rs 2,686.00 lakh; power and fuel costs rose to Rs 406.95 lakh from Rs 366.09 lakh.

• Fixed-asset additions were Rs 302.53 lakh; net fixed assets stood at Rs 2,604.00 lakh at year-end.

Outlook and guidance

• Future R&D priorities include improving productivity of steel, fuel and power inputs; export marketing sought new multinational customers.

• Die-making equipment was installed to improve quality and reduce wastage; continued quality upgrades were planned at both plants.