Ratnamani Metals & Tubes (520111) Q4 93/94 earnings summary

Executive summary

• FY94 sales and other income rose 24.40% to Rs 3,194.48 lakh; reported profit after tax increased 24.57% to Rs 128.28 lakh despite recessionary conditions in user industries.

• Production increased 33.58% to 2,140 MT, while sales tonnage rose 36.78% to 2,262 MT; export sales including deemed exports climbed to Rs 534 lakh from Rs 158 lakh.

Financial highlights

• Sales and other income were Rs 3,194.48 lakh versus Rs 2,609.00 lakh; profit before tax was Rs 155.28 lakh versus Rs 151.98 lakh.

• Profit after tax was Rs 128.28 lakh versus Rs 102.98 lakh; tax provision fell to Rs 27 lakh from Rs 49 lakh.

• Proposed dividend remained 20% on the increased capital, absorbing Rs 56.57 lakh; Rs 50 lakh was transferred to general reserve versus Rs 125 lakh in FY93.

• Net worth per equity share increased to Rs 36.97 from Rs 22.88.

Outlook and guidance

• FY95 order book stood at Rs 1,060 lakh for domestic markets and Rs 567 lakh for exports, including deemed exports; management expected improved operations and performance.

• Plans called for importing four additional Pilger Mills to expand capacity; the Rs 11.40 crore project was to be funded by Rs 8 crore in institutional term loans and Rs 3.40 crore from internal accruals.

• Integrated business planning was being developed to align departments and respond to market changes; marketing efforts were expected to support further export growth.