M M Forgings (522241) Q4 99/00 earnings summary

Executive summary

• FY2000 sales rose 17% YoY to ₹7,055.38 lakh; profit after tax rose 23% to ₹651.68 lakh.

• Domestic sales grew 18% on revived automotive demand; exports grew 16% and represented 65% of total sales.

• Capacity expansion was underway, with installed capacity planned to rise to 20,000 tonnes by March 2001 from 15,000 tonnes.

Financial highlights

• Revenue from sales was ₹7,055.38 lakh versus ₹6,042.14 lakh in FY1999; other income was ₹35.35 lakh versus ₹1.86 lakh.

• Profit before tax was ₹737.68 lakh versus ₹567.51 lakh; PAT was ₹651.68 lakh versus ₹529.35 lakh.

• Raw material costs rose to ₹3,282.47 lakh from ₹2,893.64 lakh; power and fuel costs rose to ₹652.43 lakh from ₹479.90 lakh.

• Cash from operating activities was ₹654.68 lakh; net cash increased ₹17.04 lakh to ₹55.46 lakh at year-end.

Outlook and guidance

• Expansion was scheduled to lift installed capacity to 20,000 tonnes by March 2001; a ₹700 lakh Exim Bank loan was secured to part-finance the project.

• Continued R&D focus on improving productivity of steel, fuel and power inputs; Chennai machining operations had commenced at Gears India premises.