Rain Industries (RAIN) Q4 97/98 earnings summary

Executive summary

• FY98 sales rose to Rs.194.06 crore from Rs.189.62 crore, while profit after tax fell to Rs.13.33 crore from Rs.21.04 crore amid cement-industry recession.

• Capacity utilization reached 135%, with sales exceeding the prior year and Priya Cement demand continuing to outstrip supply.

Financial highlights

• Sales were Rs.194.06 crore vs Rs.189.62 crore; profit before tax was Rs.22.23 crore vs Rs.26.09 crore.

• Profit after tax was Rs.13.33 crore vs Rs.21.04 crore; interest and finance charges fell to Rs.00.50 crore lakh? No. This figure needs accurately say Rs.500.29 lakh vs Rs.621.81 lakh.

• Proposed dividend was 18% for FY98; proposed dividend appropriation was Rs.397.98 lakh, unchanged YoY.

• Production reached 8,08,454 tonnes vs 7,74,064; sales were 8,18,281 tonnes vs 7,67,322.

Outlook and guidance

• Capacity expansion from 0.8 million to 2 million tonnes p.a. was under IDBI appraisal, with a stated capital outlay of Rs.379 crore.

• Infrastructure and housing growth was expected to lift cement demand and price realization, supporting improved profitability.

• Plans included a captive power plant, railway siding, ERP implementation and expansion to address the Priya Cement demand-supply gap.