NMDC (526371) Q4 99/00 earnings summary

Executive summary

• FY00 profit before tax of Rs.20,771.55 lakh was the second-highest since inception; performance earned an “Excellent” MoU rating despite continuing steel-market recession.

• Diamond production reached a record 40,230 carats; the 25% interim dividend was recommended as final, extending dividend payments to 10 consecutive years.

Financial highlights

• Sales were Rs.78,615.55 lakh vs Rs.72,523.31 lakh in FY99; profit before tax was Rs.20,771.55 lakh vs Rs.17,199.07 lakh.

• Profit after tax was Rs.15,999.75 lakh vs Rs.14,040.20 lakh; EPS was Rs.12.30 vs Rs.11.03.

• Net worth rose to Rs.928.57 crore from Rs.793.95 crore; reserves and surplus increased to Rs.818.11 crore.

Outlook and guidance

• Late-year economic improvement and advance production-augmentation and diversification work were expected to position operations for a recovery in demand.

• Panna diamond-mine capacity expansion was on schedule, with equipment installation expected to finish by October 2000; the Bailadila tertiary crushing plant was targeted for March 2001.

• Bailadila 10/11A construction was expected to finish by July 2002; UPFO regular production was expected to begin in November 2000.