Raymond (RAYMOND) Q4 97/98 earnings summary

Executive summary

• FY98 performance improved: gross turnover rose 23.6% to Rs.1,518.9 crore and profit before tax increased to Rs.53.3 crore from Rs.13.9 crore.

• Textiles, Files and Tools improved, while Cement and Steel faced pricing and margin pressure; the Chhindwara textile strike ended in April 1997.

Financial highlights

• Sales and other income rose 23.3% to Rs.1,225.28 crore; profit before interest, depreciation and tax increased 46.5% to Rs.239.6 crore.

• Net profit after tax was Rs.48.03 crore versus Rs.12.68 crore; EPS was Rs.6.40 versus Rs.1.70.

• Interest expense rose to Rs.101.75 crore from Rs.83.92 crore, and depreciation to Rs.84.59 crore from Rs.65.78 crore.

• Exports increased 40% to Rs.222.8 crore from Rs.158.1 crore.

Outlook and guidance

• Denim operations reported stronger April sales of 11 lakh metres; directors expected better FY99 performance, barring unforeseen circumstances.

• Cement exports to Bangladesh and Nepal exceeded twice the prior-year level; first clinker exports to Bangladesh began, with further exports expected in FY99.