Shakti Pumps (India) (531431) Q4 97/98 earnings summary

Executive summary

• 18-month period ended June 30, 1998: total income Rs 350.92 million and profit after tax Rs 9.32 million; prior-year comparison is not directly comparable.

• Pump operations continued amid recession, tight industrial-sector financing, political instability and natural calamities; directors described performance as satisfactory.

Financial highlights

• Sales Rs 340.55 million, other receipts Rs 0.66 million and inventory increase Rs 9.71 million; total income Rs 350.92 million.

• Total expenditure Rs 340.50 million; profit before tax Rs 10.42 million, tax provision Rs 1.09 million and profit after tax Rs 9.32 million.

• Proposed dividend of 2% p.a. on a pro-rata basis for the period ended June 30, 1998.

Outlook and guidance

• Domestic demand was described as sufficient and likely to grow; export-market development and overseas order opportunities were being pursued.

• Directors anticipated improved energy efficiency from process preparation changes, equipment availability and preventive maintenance measures.