Rain Industries (RAIN) Q4 04/05 earnings summary

Executive summary

• FY05 cement revenue reached Rs 29,603 lakh and production rose to 1,269,976 tonnes; the year still ended with a net loss of Rs 1,938 lakh.

• Accumulated losses of Rs 54.38 crore exceeded half of net worth of Rs 76.75 crore, triggering potentially sick industrial company status.

Financial highlights

• FY05 sales were Rs 29,603 lakh versus Rs 11,613 lakh in FY04; profit before interest and depreciation was Rs 1,804 lakh versus a loss of Rs 365 lakh.

• FY05 interest and finance charges were Rs 2,659 lakh; depreciation and amortisation were Rs 1,429 lakh; net loss narrowed to Rs 1,938 lakh from Rs 3,500 lakh.

• FY05 EPS was negative Rs 13.09 versus negative Rs 23.65 in FY04.

• Standalone holding-company results for the 18 months to Mar. 31, 2005 showed sales of Rs 66 lakh and a loss of Rs 109 lakh after the cement division transfer.

Outlook and guidance

• Management expected cement demand and prices to improve, supported by infrastructure, road, airport, seaport and housing investment.

• Management cited revival measures and planned to pursue higher exports in FY06.