Triveni Engineering & Industries (TRIVENI) Q4 99/00 earnings summary

Executive summary

• Merger effective 31 Mar 2000 combined the former Triveni Engineering & Industries and Gangeshwar operations; reported results cover 12 months of transferee operations plus 30 months of transferor operations and are not comparable with prior period.

• Operations generated net profit of Rs 19.61 crore before Rs 33.95 crore of one-time accounting-policy and prior-period charges; the reported result after these charges was a net loss of Rs 14.34 crore.

Financial highlights

• Net income from operations was Rs 911.39 crore versus Rs 303.02 crore; other income was Rs 19.04 crore versus Rs 2.09 crore, with periods not comparable.

• Profit before interest and depreciation was Rs 118.70 crore; depreciation was Rs 22.57 crore, interest Rs 76.35 crore, and profit before tax Rs 19.78 crore.

• Profit after tax was Rs 19.61 crore versus Rs 0.78 crore; accounting-policy changes of Rs 24.16 crore and prior-period expenses of Rs 9.79 crore drove the Rs 14.34 crore net loss.

• Net current assets were Rs 274.57 crore; secured loans were Rs 326.19 crore and unsecured loans Rs 52.32 crore at 31 Mar 2000.

Outlook and guidance

• Sugar profitability expected to improve if cane costs are controlled; Khatauli and Deoband cane availability was expected to rise after weak yields and shortages in 1999-2000.

• Improved capital-goods demand was expected to lift turbine and gear sales and profitability over the next two years; Lufkin-designed gear orders were expected within 6-9 months.

• Firm oil prices above US$26/barrel were expected to support drilling activity and facilitate rig disposals; proceeds and Naini asset sales were expected to benefit performance.