Pakka (516030) Q4 96/97 earnings summary

Executive summary

• FY97 ended with a net loss of Rs. 65.02 lakh versus net profit of Rs. 254.22 lakh in FY96; no dividend was recommended.

• Sales fell 11.84% to Rs. 1,680.07 lakh, amid sluggish markets and power-supply disruptions.

• Paper production declined to 10,577 MT from 10,899 MT; sales volume was 10,592 MT versus 10,830 MT.

Financial highlights

• Sales were Rs. 1,680.07 lakh versus Rs. 1,905.55 lakh; other income rose to Rs. 40.50 lakh from Rs. 36.26 lakh.

• Total income was Rs. 1,722.05 lakh; total expenditure was Rs. 1,787.07 lakh, resulting in a pre-tax and post-tax loss of Rs. 65.02 lakh.

• FY96 reported profit after tax was Rs. 254.22 lakh; FY97 tax provision was nil.

• Reserves and surplus were Rs. 764.08 lakh at 31 March 1997, down from Rs. 833.14 lakh a year earlier.

Outlook and guidance

• Management expected substantial power and fuel savings from successful operation of the 2.5 MW captive power plant.

• Management expected market improvement following import restrictions and expressed confidence in the current year, barring unforeseen circumstances.