Maharashtra Seamless (500265) Q4 01/02 earnings summary

Executive summary

• FY02 turnover rose 40% to Rs 376.67 crore; PBT increased 78% to Rs 71.86 crore and PAT after adjustments reached Rs 50.05 crore.

• Higher production, sales realization, capacity utilization and cost control supported results; a 7 MW wind project began generating captive power in Dec 2001.

Financial highlights

• Turnover was Rs 376.67 crore vs Rs 269.14 crore; sales and operating income totaled Rs 372.72 crore vs Rs 266.37 crore.

• PBT was Rs 71.86 crore vs Rs 40.42 crore; profit after tax and adjustments was Rs 50.05 crore vs Rs 31.35 crore.

• Proposed equity dividend was 20%, absorbing Rs 5.76 crore; the accounts also provided Rs 0.39 crore for cumulative convertible preference-share dividend.

Outlook and guidance

• Expansion plans target doubling installed capacity to 200,000 MT p.a. for Seamless and ERW pipes, extending Seamless pipe sizes from 7 to 14 inches, and establishing pipe-coating operations.

• Management expected expansion to increase turnover and profitability and improve market share and production costs; no quantified financial guidance was stated.