Pitti Engineering (513519) Q4 98/99 earnings summary

Executive summary

• FY1998-99 total income was Rs.1,964.55 lacs versus Rs.2,149.77 lacs; net loss widened to Rs.777.79 lacs from Rs.213.53 lacs.

• Accumulated losses exceeded net worth, making the business a sick industrial company under SICA; directors planned a reference to BIFR.

Financial highlights

• Sales and services were Rs.2,049.24 lacs versus Rs.2,267.78 lacs; total expenditure before tax was Rs.2,742.34 lacs versus Rs.2,363.30 lacs.

• Manufacturing and administrative expenses rose to Rs.555.10 lacs from Rs.331.59 lacs; finance charges were Rs.381.87 lacs versus Rs.400.97 lacs, and depreciation was Rs.78.26 lacs versus Rs.78.05 lacs.

• Write-offs of obsolete stock, tools and dies, unrecoverable debts and advances totaled Rs.576.73 lacs; the reported loss from operations was Rs.201.06 lacs and total loss was Rs.777.79 lacs.

Outlook and guidance

• Based on customer discussions and signs of market improvement, the FY1999-2000 sales target was 2,600 MT.

• FY1998-99 export turnover was Rs.19.23 lacs; exports were expected to increase, with the current-year export order book described as encouraging.