Raminfo (530951) Q4 97/98 earnings summary

Executive summary

• FY1997-98 gross revenue was Rs 34,576 thousand and profit after tax was Rs 4,475 thousand; both increased YoY, but fell short of prospectus projections.

• Export-order delays shifted revenue toward lower-volume, lower-margin domestic projects; the revenue mix was expected to improve as exports gained momentum.

Financial highlights

• Gross revenue rose to Rs 34,576 thousand from Rs 27,277 thousand; profit before tax increased to Rs 4,950 thousand from Rs 3,102 thousand.

• Profit after tax was Rs 4,475 thousand versus Rs 2,702 thousand; the 1997-98 result included a Rs 25 thousand prior-year adjustment.

• Revenue was Rs 34,576 thousand versus the Rs 62,320 thousand prospectus projection; profit after tax was Rs 4,475 thousand versus Rs 12,524 thousand projected.

• Gross revenue included overseas sales of Rs 3,018 thousand, domestic sales of Rs 19,868 thousand and training income of Rs 8,606 thousand.

Outlook and guidance

• US operations were expected to stabilize by end-1998, initially serving on-site projects secured with two US clients, then marketing offshore projects.

• An eight-year expansion plan envisaged infrastructure for up to 1,000 professionals, 16 owned training centres serving 8,000 students annually and 60 franchise centres serving 2,000.

• The expansion plan estimated Rs 510 million of investment over two phases across eight years; funding options were being worked out.

• ISO 9001 certification was targeted by the end of the current year.