Ratnamani Metals & Tubes (520111) Q4 95/96 earnings summary

Executive summary

• FY1995-96 sales rose 27.93% YoY to Rs 4,841.07 lakh; net profit increased 134% to Rs 418.63 lakh.

• Production tonnage increased 18% YoY, up 438 MT; proposed dividend was Rs 2 per equity share.

Financial highlights

• Sales and other income totaled Rs 4,853.07 lakh, versus Rs 3,788.96 lakh in FY1994-95.

• Profit before tax and net profit were both Rs 418.63 lakh, compared with Rs 178.81 lakh in the prior year.

• Materials cost was Rs 3,016.71 lakh; other expenses rose to Rs 752.06 lakh from Rs 416.88 lakh.

• Proposed dividend of Rs 2 per share on 4,725,000 shares would absorb Rs 70.28 lakh.

Outlook and guidance

• Production facilities were being reorganized, with separate stainless-steel instrumentation-tube and heat-exchanger-tube divisions planned at 10 MT and 100 MT monthly capacity, respectively.

• The new tube divisions were expected to be completed soon; modernization of welded-tube manufacturing facilities was also underway.

• Export efforts targeted sophisticated markets in advanced countries through divisionalized production facilities.