Pitti Engineering (513519) Q4 99/00 earnings summary

Executive summary

• FY1999-2000 sales volume rose 18.76% to 2,778 MT and turnover increased 9.81% to Rs.2,250.42 lacs; net loss narrowed to Rs.391.80 lacs from Rs.777.79 lacs.

• Higher volumes, cost controls and exports reduced operational loss to Rs.60.42 lacs from Rs.201 lacs; cash profit was Rs.30.60 lacs before the impact of the tools write-off.

Financial highlights

• Total income was Rs.2,188.53 lacs, including sales and services of Rs.2,250.42 lacs, other income of Rs.2.43 lacs and a Rs.64.31 lacs decrease in stocks.

• Loss before and after tax was Rs.391.80 lacs, versus a Rs.777.79 lacs loss in FY1998-99; finance charges were Rs.401.85 lacs and depreciation Rs.78.89 lacs.

• Exports increased to Rs.81.19 lacs from Rs.19.23 lacs; export volume was 22 MT.

Outlook and guidance

• FY2000-01 sales target is 3,100 MT, implying stated growth of 11.59%; a nominal profit was considered possible if the revival scheme is in place for a major part of the year.

• Management expected market improvement to continue and planned further export growth.