The Bombay Burmah Trading Corporation (501425) Q4 98/99 earnings summary

Executive summary

• FY99 PAT fell to Rs 7.86 lakh from Rs 808.86 lakh; pre-depreciation gross profit declined to Rs 866.46 lakh from Rs 1,898.62 lakh.

• A prolonged Singampatti labor disruption and losses at the newly commissioned particle-board operation were major profit pressures; recession also hurt building products and springs.

Financial highlights

• Total income was Rs 14,338.73 lakh versus Rs 14,039.60 lakh; profit before tax was Rs 274.86 lakh versus Rs 1,070.86 lakh.

• Revenue from sales was Rs 12,790.98 lakh versus Rs 13,083.41 lakh; interest expense rose to Rs 1,192.69 lakh from Rs 958.19 lakh.

• Proposed dividend was 10% (Rs 1 per share), compared with 26% in FY98.

Outlook and guidance

• Singampatti was expected to return to normal tea production by September 1999 after bush pruning and weed removal; near-normal conditions had returned in May.

• Springs performance was expected to improve with new products and a likely auto-industry recovery; Afcoset Balances outlook was favorable.

• Particle Board operations were under a monitored improvement and cost-reduction plan to stabilize output and reduce losses.