Maharashtra Scooters (MAHSCOOTER) Q4 06/07 earnings summary

Executive summary

• Gear-scooter production ceased in Apr 2006; activity shifted to pressure die-casting dies, while 2,402 scooters from opening inventory were sold.

• Turnover fell to Rs.305.7m from Rs.422.8m; net profit was Rs.98.8m, with a Rs.44.7m deferred-tax asset write-down affecting post-tax appropriations.

Financial highlights

• Net sales and other income were Rs.305.7m vs Rs.422.8m; net sales were Rs.75.1m vs Rs.201.8m, while other income rose to Rs.230.5m from Rs.221.0m.

• Profit before tax was Rs.99.7m vs Rs.131.0m; profit for the year was Rs.98.8m vs Rs.140.7m.

• After earlier-year tax credits of Rs.20.5m and a Rs.44.7m deferred-tax asset write-down, profit available for appropriations was Rs.74.6m vs Rs.153.7m.

• Treasury-operation income was Rs.231m vs Rs.221m; gross profit before interest and depreciation was Rs.110.7m vs Rs.142.1m.

Outlook and guidance

• Near-term outlook was uncertain; alternative business options were under consideration following the end of geared-scooter production.

• A productivity-linked wage settlement covering 1 Apr 2007–30 Sep 2010 was expected to support harmonious workforce relations.