Ratnamani Metals & Tubes (520111) Q4 99/00 earnings summary

Executive summary

• FY 1999-2000 sales turnover fell 7.80% and net profit fell 4.31% YoY amid sluggish demand, with new project activity picking up near year-end.

• New SAW pipe orders, product development and capacity plans supported expectations for improved sales in FY 2000-01.

Financial highlights

• Revenue was Rs 5,545.18 lakh vs Rs 6,014.42 lakh; PBT was Rs 261.93 lakh vs Rs 284.34 lakh.

• PAT was Rs 210.93 lakh vs Rs 220.43 lakh; depreciation was Rs 258.02 lakh vs Rs 235.10 lakh.

• Financial expenses declined to Rs 188.38 lakh from Rs 280.40 lakh; material cost was Rs 3,141.01 lakh vs Rs 3,365.28 lakh.

Outlook and guidance

• Order book at the start of FY 2000-01 was about Rs 35 crore, including SAW pipe and export orders; management expected sales turnover to improve.

• Greenfield refinery plans, sugar-industry revival and power projects were expected to support order prospects.

• A mobile unit at Botad was set up to manufacture carbon steel SAW pipes for an Essar Project order; further large-diameter SAW capacity was being erected.

• Modernisation of pilger mills, tube mills and balancing facilities was planned to raise capacity, productivity and price competitiveness.