Raymond (RAYMOND) Q4 98/99 earnings summary

Executive summary

• FY ended Mar. 31, 1999: total income rose 6.7% to Rs. 1,307.35 crore; stronger realizations and lower operating costs lifted profitability despite modest sales growth and intense competition.

• Profit before tax reached Rs. 96.76 crore, up 81.5%; the P&L recorded PAT of Rs. 86.59 crore, while the Directors reported Rs. 80.77 crore after prior-year adjustments.

Financial highlights

• Gross turnover increased 3.8% to Rs. 1,576.54 crore from Rs. 1,518.91 crore; total income was Rs. 1,307.35 crore versus Rs. 1,225.28 crore.

• PBT was Rs. 96.76 crore versus Rs. 53.32 crore; P&L PAT was Rs. 86.59 crore versus Rs. 48.03 crore, before prior-year adjustments.

• Excluding the Rs. 15.06 crore trial-run expenditure capitalised, reported PBT was Rs. 96.76 crore; prior-year trial-run expenditure capitalised was Rs. 3.74 crore.

• Exports declined to Rs. 179.96 crore from Rs. 222.8 crore amid sluggish demand and intense competition in traditional markets.

Outlook and guidance

• Management expected exports to recover to higher levels as efforts expanded into the Middle East, West Asia, Australia and SAARC markets; new retail outlets opened in Colombo and were planned for Kathmandu.

• Cement-plant process-control equipment replacement costing Rs. 3.25 crore was expected to be commissioned by Nov. 1999; delays could marginally affect production.

• Older PCs and operating systems were planned for replacement by June 1999 at an estimated cost of Rs. 1.50 crore; secondary in-house applications were due for Y2K conversion by July 31, 1999.