Rajratan Global Wire (517522) Q4 01/02 earnings summary

Executive summary

• FY2001-02 turnover rose 8% to Rs 52.03 crore; profit before tax rose 45% to Rs 4.09 crore despite a depressed economic environment.

• Performance was attributed to customer focus, product reliability, teamwork and cost control.

Financial highlights

• Revenue from steel wire sales was Rs 52.03 crore versus Rs 48.29 crore in FY2000-01; total income was Rs 51.70 crore.

• Profit before tax was Rs 4.09 crore versus Rs 2.83 crore; profit after tax was Rs 3.18 crore versus Rs 2.62 crore.

• Net profit available for appropriation was Rs 3.84 crore; Rs 2.50 crore was transferred to general reserve and Rs 77.41 lakh carried forward.

• Proposed dividend increased to 15% from 12% in the prior year, subject to the Finance Bill 2002 amendment on TDS.

Outlook and guidance

• Planned tyre bead wire capacity expansion to 20,400 MT in FY2002-03; continuing capacity additions were intended to support growth.

• Export efforts had produced encouraging results; priorities included quality improvement, production efficiency, cost savings and product innovation.