Ratnamani Metals & Tubes (520111) Q4 96/97 earnings summary

Executive summary

• FY1996-97 sales and other income were Rs 4,875.60 lac, near the prior year, while profit after tax fell to Rs 245.79 lac from Rs 418.63 lac.

• Weaker demand in stainless steel welded and seamless tubes was offset by improved seamless market position, higher seamless production and a sharp rise in direct exports.

Financial highlights

• Sales and other income rose to Rs 4,875.60 lac from Rs 4,853.07 lac; profit before tax declined to Rs 285.79 lac from Rs 418.63 lac.

• Profit after tax was Rs 245.79 lac versus Rs 418.63 lac; FY1996-97 included Rs 40 lac current tax provision, compared with nil in FY1995-96.

• Proposed dividend was Rs 1.50 per equity share, absorbing Rs 70.88 lac; Rs 60 lac was transferred to general reserve and Rs 40 lac to debenture redemption reserve.

Outlook and guidance

• Directors expected to maintain current operating levels by balancing volumes against margins.

• Competition was expected to intensify from domestic suppliers amid weak demand and from imports following lower customs duties.

• Cost-effectiveness initiatives included process improvements, workforce training and expenditure reductions, using lower capacity utilization to consolidate operations.