Tube Investments of India (TIINDIA) Q4 00/01 earnings summary

Executive summary

• FY01 turnover reached ₹1,090.02 crore, up 11.2%; PBT rose 23.2% to ₹50.91 crore and PAT increased 10% to ₹36.16 crore.

• Growth was achieved amid industrial slowdown, weak rural demand, stiff competition and volatile raw-material prices; focus remained on quality, cost reduction and working capital.

• Recommended dividend of ₹5 per share, including a ₹0.50 special component marking turnover above ₹1,000 crore for the first time.

Financial highlights

• Sales and processing charges were ₹109,002 lakh versus ₹97,993 lakh; other income was ₹1,287 lakh versus ₹1,362 lakh.

• PBT was ₹5,091 lakh versus ₹4,134 lakh; tax provision rose to ₹1,475 lakh from ₹850 lakh, and PAT was ₹3,616 lakh versus ₹3,284 lakh.

• Interest expense declined to ₹1,959 lakh from ₹2,188 lakh; depreciation increased to ₹3,359 lakh from ₹2,958 lakh.

• Operating cash flow was ₹7,150 lakh versus ₹3,771 lakh; cash and cash equivalents ended FY01 at ₹2,979 lakh.

• Final dividend proposed at ₹5 per equity share; total dividend appropriation was ₹1,231 lakh, with ₹126 lakh dividend tax.

Outlook and guidance

• Expected bicycle-industry growth was 4% in FY02, with possible low-priced Chinese imports adding competitive pressure.

• Domestic tube-market growth was forecast at 5% in FY02; demand outlook remained closely tied to the auto sector, which represented nearly 45% of tube revenues.

• Nashik plant benefits were expected to accrue in FY02 through lower costs, faster western-region service and reduced inventory.

• ERP first phase, covering major Chennai manufacturing locations, was expected to finish in Q2 FY02.