Trent (TRENT) Q4 96/97 earnings summary

Executive summary

• FY ended Mar. 31, 1997 followed major restructuring; prior-year comparisons are not representative after transfers of cosmetics sales/marketing, brands and pharma operations.

• Profit before extraordinary items and tax rose to Rs. 2,096.67 lakh from Rs. 778.67 lakh; reported net profit was Rs. 1,453.69 lakh after Rs. 860 lakh tax.

Financial highlights

• Income from operations was Rs. 4,877.36 lakh, including Rs. 1,553.27 lakh interest on short-term loans and advances; sales were Rs. 3,324.09 lakh.

• PBT was Rs. 2,313.69 lakh, including Rs. 217.02 lakh extraordinary profit on transfer of the Miaami Pharma Division; PAT was Rs. 1,453.69 lakh.

• Manufacturing and other expenses fell to Rs. 3,463.80 lakh from Rs. 8,010.02 lakh, reflecting the changed business profile and transferred operations.

• Operating cash flow was negative Rs. 8,917.24 lakh; cash and cash equivalents declined by Rs. 667.73 lakh to Rs. 443.26 lakh.

Outlook and guidance

• Higher production capacity from new equipment and the April 1997 workers’ union agreement is expected to benefit the current year.

• Lakme Exports expected volumes to grow in 1997-98 after exports to CIS countries and other markets picked up and supplies to Lakme Lever increased 36%.

• Lakme Brands planned continued development of high-quality formulations and technology products to strengthen domestic and export markets.