Rain Industries (RAIN) Q4 96/97 earnings summary

Executive summary

• FY97 sales rose to Rs189.62cr from Rs171.50cr; net profit increased to Rs21.04cr from Rs20.69cr, with cement production and sales volumes both higher YoY.

• Directors recommended an 18% dividend; capacity expansion and diversification were key strategic priorities.

Financial highlights

• Sales were Rs189.62cr vs Rs171.50cr; profit before interest and depreciation was Rs37.40cr vs Rs35.40cr.

• PBT was Rs26.09cr vs Rs20.69cr; PAT was Rs21.04cr vs Rs20.69cr, after a Rs1.94cr extraordinary item and Rs0.07cr prior-period adjustment in FY97.

• Interest and finance charges fell to Rs6.22cr from Rs10.06cr; depreciation rose to Rs3.08cr from Rs2.91cr.

Outlook and guidance

• A closed-circuit grinding mill was being installed to augment cement capacity and produce higher-quality cement for improving consumer demand.

• Operational improvement, quality focus and lower-cost power sourcing were expected to support future performance; no numerical guidance was stated.

• Board considered new business lines, including ferroalloys and ceramic/sanitary products, subject to shareholder, regulatory and financing approvals where applicable.