Timken India (522113) Q4 99/00 earnings summary

Executive summary

• FY00 delivered stronger sales and earnings; gross profit rose 42% and PAT rose 109% YoY, eliminating accumulated losses.

• Positive performance reflected higher sales, operating-cost savings and lower interest expense; the year ended with Rs 110 lakh carried forward after preference-dividend appropriations.

Financial highlights

• Sale of products and other income was Rs 16,467 lakh vs Rs 14,467 lakh; net sales were Rs 14,636 lakh vs Rs 12,954 lakh, with sales growth of 13%.

• Gross profit was Rs 3,309 lakh vs Rs 2,330 lakh; EBIT Rs 2,185 lakh vs Rs 1,306 lakh; PBT Rs 1,763 lakh vs Rs 813 lakh.

• Interest expense fell to Rs 423 lakh from Rs 493 lakh; PAT increased to Rs 1,520 lakh from Rs 728 lakh, up 109% YoY.

• Preference dividend of Rs 791.32 lakh, including Rs 78.42 lakh dividend tax, cleared arrears through FY97-98; no equity dividend was recommended.

Outlook and guidance

• Positive economic trends were expected to continue, while the year ahead was viewed as challenging; focus remained on cost savings, market positioning and shareholder value.

• The small-bearings project was expected to complete by 2000, adding capacity of around one million bearings annually.