Shivalik Bimetal Controls (513097) Q4 99/00 earnings summary

Executive summary

• FY00 sales reached Rs 2,461.60 lacs, up 29.25% YoY; net profit was Rs 224.43 lacs vs Rs 151.78 lacs. A 25% dividend was recommended.

• Expansion focused on edge-welded trimetals and updated bimetal-strip capability, alongside plans for overseas collaboration and a rights issue to help finance investment.

Financial highlights

• Sales and other income were Rs 2,483.42 lacs vs Rs 1,928.88 lacs; profit before interest, depreciation and tax was Rs 340.90 lacs vs Rs 241.90 lacs.

• Profit before tax was Rs 264.43 lacs vs Rs 178.10 lacs; net profit was Rs 224.43 lacs vs Rs 151.78 lacs.

• Raw material consumed rose to Rs 1,167.09 lacs from Rs 857.85 lacs; other expenses were Rs 761.39 lacs vs Rs 547.13 lacs.

Outlook and guidance

• The imported E.B. strip welding machine was ordered from Germany, with installation and production targeted by end-December 2000.

• Expansion plans included trimetal manufacturing using acquired E.B. Technology know-how and an overseas project, preferably near Europe, to support international competition.

• Directors expected the proposed overseas joint-venture investment to generate returns within a reasonable time.