Maharashtra Scooters (MAHSCOOTER) Q4 98/99 earnings summary

Executive summary

• FY1998-99 sales and other income rose 16% to Rs.3,210 million; profit after tax increased to Rs.171 million from Rs.147 million.

• Performance improved despite a stagnant scooter market and a continuing shift in two-wheelers toward motorcycles.

Financial highlights

• Sales and other income were Rs.3,209.8 million versus Rs.2,758.5 million; sales including excise duty were Rs.3,079.4 million versus Rs.2,640.4 million.

• Gross profit before interest and depreciation was Rs.247 million versus Rs.217 million; profit before tax was Rs.232.1 million versus Rs.203.4 million.

• Profit after tax rose to Rs.171.1 million from Rs.147.4 million; EPS was Rs.15 versus Rs.13.

• Other income increased to Rs.130.4 million from Rs.118.0 million, including investment income of Rs.55.7 million and interest of Rs.51.8 million.

Outlook and guidance

• Management expected modest growth in the current year, following FY1998-99 improvement in production, sales and market share.

• Y2K remediation was in progress, with all systems expected to be ready by September 1999; directly identified costs were estimated at Rs.2.5 million.