Ratnamani Metals & Tubes (520111) Q4 98/99 earnings summary

Executive summary

• FY1998-99 sales and other income fell 10.85% YoY; net profit declined 34% amid sluggish industrial investment and lower demand.

• Product-line rationalization prioritized value-added output; export sales rose 43% to Rs.577.26 lakh.

Financial highlights

• Sales and other income were Rs.6,018.39 lakh vs Rs.6,751.18 lakh; PBT was Rs.284.34 lakh vs Rs.378.78 lakh.

• PAT was Rs.220.43 lakh vs Rs.332.54 lakh; tax provision was Rs.63.91 lakh vs Rs.46.24 lakh.

• Financial expenses increased to Rs.283.95 lakh from Rs.209.12 lakh.

Outlook and guidance

• Management viewed the worst of the downturn as possibly over, citing signs of economic recovery, low inflation and foreign institutional investment.

• Gujarat water-supply schemes in North Gujarat and Saurashtra could create pipe demand; business prospects remain subject to intense competition.

• Y2K hardware, software and data-storage upgrades were in progress, with completion expected by end-1999.