The Bombay Burmah Trading Corporation (501425) Q4 99/00 earnings summary

Executive summary

• Financial year extended to 18 months, 1 Apr 1999–30 Sep 2000, to absorb the impact of prolonged labour disruption at Singampatti tea estates.

• Results swung to a loss amid reduced plantation output, higher labour costs, pressure on tea prices and uneconomic particle-board operations.

Financial highlights

• Gross income was Rs 19,370.33 lakhs; loss before tax Rs 1,611.11 lakhs and loss after tax Rs 1,638.32 lakhs, versus prior-year 12-month profit after tax of Rs 7.86 lakhs; periods are not comparable.

• Gross loss before depreciation was Rs 871.48 lakhs, compared with gross profit before depreciation of Rs 866.46 lakhs in the prior 12-month year.

• Directors recommended a 10% dividend, Re 1 per share, funded from reserves.

Outlook and guidance

• Plantation strategy under review; options to grow organic tea include strategic alliances, licences and leases.

• Formica cost-reduction and operating-improvement measures began showing positive results from June 2000; Afcoset balances outlook described as favourable.

• Restructuring options for Central India Board Products were under examination after operations at Itarsi were suspended.