Rajratan Global Wire (517522) Q4 02/03 earnings summary

Executive summary

• FY 2002-03 production grew 20%, turnover 16% and profit before depreciation and tax 5%; steep steel-price increases constrained profit growth as long-term contracts limited cost pass-through.

• Domestic performance was described as strong, with increased market share and initial success exporting against global competitors.

Financial highlights

• Sales of steel wire were ₹6,030.17 lakh, versus ₹5,203.40 lakh in FY 2001-02; reported turnover growth was 16%.

• Profit before tax was ₹423.88 lakh, versus ₹409.38 lakh; profit after tax was ₹304.90 lakh, versus ₹318.33 lakh.

• Profit before depreciation was ₹514.61 lakh, versus ₹488.83 lakh; depreciation was ₹90.73 lakh, versus ₹79.45 lakh.

• Export FOB value rose to ₹367.94 lakh from ₹273.86 lakh; other income included ₹29.25 lakh of duty drawback.

Outlook and guidance

• Barring unforeseen contingencies, current-year performance was expected to be satisfactory; anticipated price increases were expected to improve performance.

• A major tyre bead wire expansion was underway, intended to raise capacity gradually to a global scale and support future performance.

• ISO-TS/16949 accreditation was targeted by June 2003.