Ratnamani Metals & Tubes (520111) Q4 91/92 earnings summary

Executive summary

• FY1991-92 sales and other income reached Rs.2,460.57 lakh; profit after tax was Rs.92.93 lakh, with results reflecting the amalgamation effective 1 April 1991.

• Operations expanded through new manufacturing and testing facilities; plans targeted further modernization, exports and a proposed public issue.

Financial highlights

• Sales and other income: Rs.2,460.57 lakh vs Rs.1,654.80 lakh in FY1990-91.

• Profit before depreciation and tax: Rs.212.28 lakh vs Rs.147.91 lakh, up 43.5% as reported; depreciation rose to Rs.59.85 lakh from Rs.24.53 lakh.

• Profit before tax: Rs.152.43 lakh vs Rs.123.38 lakh; profit after tax: Rs.92.93 lakh vs Rs.88.38 lakh.

• Proposed 20% equity dividend of Rs.22.90 lakh; Rs.100 lakh transferred to General Reserve and Rs.61.57 lakh carried forward.

Outlook and guidance

• Planned purchase of Pilger Mills from Intertec GmbH, Germany, subject to an import licence; expected to reduce wastage and process time and improve delivery and competitiveness.

• Modernization was expected to support larger exports; initial export sales were Rs.3.38 lakh, with negotiations underway for further orders.

• Proposed public issue and internal cash accruals intended to fund modernization and higher long-term working-capital needs.