Maharashtra Seamless (500265) Q4 96/97 earnings summary

Executive summary

• FY97 sales rose 28.1% YoY to Rs 13,781.1 lacs, while profit after tax fell to Rs 698.6 lacs from Rs 1,808.6 lacs.

• Directors reported 20.63% growth in total income from sales and operations to Rs 14,093 lacs; operations advanced, with growth expected to continue.

Financial highlights

• Sales were Rs 13,781.1 lacs vs Rs 10,757.9 lacs; profit before tax was Rs 804.8 lacs vs Rs 1,808.6 lacs.

• Profit after tax and adjustment was Rs 698.6 lacs vs Rs 1,808.6 lacs; financial charges declined to Rs 547.9 lacs from Rs 659.0 lacs.

• Proposed dividends: 10% on equity shares and 12% on cumulative convertible preference shares.

• Net cash from operating activities was Rs 1,338.0 lacs vs net cash used of Rs 175.7 lacs in FY96.

Outlook and guidance

• Export plans for seamless pipes were in development, with considerable orders in hand; directors expected the current growth rate to continue.

• Future R&D priorities included new sizes, product quality upgrades, technology improvement, energy conservation, cost reduction, and ISO-9002/IS-14002.