Maharashtra Seamless (500265) Q4 00/01 earnings summary

Executive summary

• FY ended Mar. 31, 2001 gross turnover was Rs 268.09 crore, up 38% YoY; PBT rose 67% to Rs 40.42 crore and adjusted PAT rose 78% to Rs 31.35 crore.

• ERW pipe production began in Sept. 2000, adding a new 50,000 MT annual-capacity operation.

Financial highlights

• Sales were Rs 2,654.08 million vs Rs 1,924.27 million; total income was Rs 2,697.90 million vs Rs 1,988.02 million.

• PBT was Rs 404.22 million vs Rs 241.53 million; PAT before prior-year tax adjustments was Rs 319.62 million vs Rs 175.64 million.

• Adjusted PAT, after wealth tax and prior-year income-tax adjustments, was Rs 313.53 million vs Rs 175.67 million.

• Proposed dividends: 15% on equity shares and 12% pro rata on cumulative convertible preference shares; total including dividend tax to absorb Rs 4.66 crore.

Outlook and guidance

• R&D priorities include new pipe sizes, product-quality upgrades, technology improvements, energy conservation and cost reduction.

• Corporate governance guidelines were targeted for implementation during FY 2001-02; an Audit Committee had been formed to review financial statements, policies and internal controls.