SKF India (500472) Q4 2002 earnings summary

Executive summary

• FY2001 net sales fell 2.52% YoY to Rs.357.30 crore; net profit rose to Rs.8.97 crore from Rs.6.86 crore, supported by a VRS provision write-back and deferred tax credit.

• Operating profit fell sharply to Rs.17.90 crore from Rs.59.71 crore as manufacturing and other expenses rose while miscellaneous income declined.

Financial highlights

• Net sales were Rs.357.30 crore versus Rs.366.53 crore in 2000; gross sales were Rs.439.67 crore versus Rs.445.67 crore.

• PBT was Rs.10.26 crore versus Rs.8.24 crore; net profit was Rs.8.97 crore versus Rs.6.86 crore.

• Profit before interest, restructuring costs and tax was Rs.17.90 crore versus Rs.59.71 crore; net interest expense declined to Rs.20.32 crore from Rs.27.97 crore.

• VRS provision write-back was Rs.12.68 crore; the 2000 VRS provision was Rs.23.50 crore, of which Rs.10.82 crore was used for 137 exits.

Outlook and guidance

• FY2002 could be slightly better than 2001, but economic uncertainty was expected to continue; recovery signs had appeared in some Indian segments since Q4 2001.

• Factory and market investments, rationalisation, and restructuring were expected to position operations to respond to a possible economic upturn.