Raymond (RAYMOND) Q4 99/00 earnings summary

Executive summary

• FY00 gross turnover rose 5.5% to Rs.1,663.88 crore, while operating profit fell 33.3% to Rs.64.52 crore amid weaker textile sales, cement margins and intense competition.

• Net profit after extraordinary loss and taxes was Rs.31.71 crore; an interim dividend of Rs.1.50 per share was declared, with no final dividend recommended to conserve resources.

Financial highlights

• Sales and other income reached Rs.1,356.59 crore, up 3.8%; profit before extraordinary item was Rs.64.52 crore versus Rs.96.76 crore in FY99.

• Profit after tax was Rs.32.62 crore versus Rs.86.59 crore; after prior-year adjustments, net profit was Rs.31.71 crore versus Rs.80.77 crore.

• A Rs.27.66 crore loss on divestment of Raymond Synthetics was charged as an extraordinary item; net profit before tax after this charge was Rs.36.87 crore.

• Aggregate exports increased to Rs.216.08 crore from Rs.179.96 crore; value added was Rs.592.95 crore, down 7.31%.

Outlook and guidance

• Steel outlook described as unfavorable amid economic slowdown, excess cold-rolled steel supply, weak demand, competition and cheaper imports.

• Restructuring plans included negotiations with prospective buyers to dispose of the Steel Division at Wadivarhe and Cement Division at Gopalnagar as going concerns, subject to required approvals.