Pakka (516030) Q4 98/99 earnings summary

Executive summary

• FY ended 31 Mar 1999: sales edged up to ₹1,688.58 lakh from ₹1,678.11 lakh; profit after tax rose to ₹31.08 lakh from ₹9.72 lakh, while production declined to 10,980 MT from 11,262 MT.

• Directors cited a stagnant, weak market, withheld a dividend to conserve resources, and targeted further cost reduction and productivity gains.

Financial highlights

• Sales ₹1,688.58 lakh vs ₹1,678.11 lakh; total income ₹1,729.72 lakh vs ₹1,744.63 lakh, reflecting a smaller increase in stocks.

• PBT ₹34.78 lakh vs ₹10.92 lakh; reported PAT ₹31.08 lakh vs ₹9.72 lakh. FY 1999 profit includes a ₹30 lakh forfeited warrant option payment credited to capital reserve, not earnings.

• Raw material consumed fell to ₹407.95 lakh from ₹412.09 lakh; manufacturing, administrative, selling and distribution expenses fell to ₹1,183.06 lakh from ₹1,221.27 lakh.

• Reserves reached ₹835.65 lakh vs ₹774.30 lakh; secured loans were ₹829.53 lakh vs ₹873.26 lakh at year-end.

Outlook and guidance

• Despite poor markets, directors expected improved current-year results barring unforeseen circumstances, supported by continued cost reduction and higher productivity.

• A 1,250 KVA diesel generator was planned as standby power; a modern boiler and balancing equipment were also proposed.