The Bombay Burmah Trading Corporation (501425) Q4 96/97 earnings summary

Executive summary

• FY ended 31 Mar 1997: profit before tax rose to Rs. 956.92 lakhs from Rs. 842.95 lakhs; profit after tax reached Rs. 706.92 lakhs from Rs. 602.95 lakhs.

• Sales were Rs. 9,967.34 lakhs versus Rs. 10,124.50 lakhs; reported total income was Rs. 11,452.54 lakhs versus Rs. 11,155.67 lakhs.

Financial highlights

• Operating and other expenses were Rs. 4,243.33 lakhs, employee costs Rs. 2,789.30 lakhs, interest Rs. 777.02 lakhs and depreciation Rs. 295.63 lakhs.

• Other income was Rs. 1,101.30 lakhs; it included Rs. 223.83 lakhs from an earlier-year excise provision reversal and Rs. 281.86 lakhs loss on sale of investments was expensed.

• Operating cash flow was negative Rs. 529.78 lakhs; investing cash flow was negative Rs. 849.47 lakhs and financing cash flow was positive Rs. 438.99 lakhs.

Outlook and guidance

• BCL Springs was expected to further improve performance in FY 1997-98 following higher capacity; the completed Afcoset weighing-scales project was expected to begin sales in June 1997.

• Commercial production of pre-laminated particle boards began after trial production and test marketing; new facility was expected to support the Central India Board Products Division.

• Tea prices firmed in the final quarter and that trend continued; coffee prices rose significantly after year-end, particularly Arabica.