Rajratan Global Wire (517522) Q4 98/99 earnings summary

Executive summary

• FY99 sales volume rose 23.67% to 12,690 MT and production rose 18.58% to 12,491 MT; profit before tax increased to Rs. 116.95 lakh from Rs. 70.97 lakh.

• Operations were described as satisfactory despite adverse economic and business conditions; lower market prices for some products constrained sales turnover.

Financial highlights

• Steel-wire sales were Rs. 35.05 crore versus Rs. 30.29 crore in FY98; total income was Rs. 34.56 crore versus Rs. 31.04 crore, reflecting a decrease in finished-goods stock.

• Profit before tax rose to Rs. 116.95 lakh from Rs. 70.97 lakh; profit after tax was Rs. 104.95 lakh versus Rs. 63.47 lakh.

• Export sales FOB value increased to Rs. 369.16 lakh from Rs. 16.96 lakh.

Outlook and guidance

• A proposed steel cord and hose wire project at Pithampur was under joint market survey and feasibility study; a final decision was pending the study.

• ISO 9002 certification work had begun for existing units, with certification expected by December 1999.