Tube Investments of India (TIINDIA) Q4 97/98 earnings summary

Executive summary

• FY1997-98 sales rose marginally to Rs.607.93 crore; operating profit improved, while profit before tax and net profit declined amid recession, higher interest and depreciation costs.

• Capacity additions in tubes and strips remained underutilised; cost control and improved product mix supported a modest rise in operating profit.

Financial highlights

• Sales were Rs.60,793 lakh vs Rs.60,005 lakh; operating profit was Rs.5,667 lakh vs Rs.5,592 lakh.

• PBT fell to Rs.1,744 lakh from Rs.2,411 lakh; PAT was Rs.1,601 lakh vs Rs.2,145 lakh.

• Interest expense rose to Rs.1,910 lakh from Rs.1,459 lakh; depreciation increased to Rs.1,969 lakh from Rs.1,616 lakh.

• EPS was Rs.6.50; total dividend proposed was 20% per share, including the 10% interim dividend.

Outlook and guidance

• Plans included opening 25 additional bicycle Cyclinics within nine months and targeting new European customers to support future export goals.

• CDW tube exports were targeted toward the US, Italy, Australia and Sri Lanka, with continued emphasis on higher-value CDW products.

• Bawal door-frame production was expected in Q2 FY1998-99; the first phase of the Hyundai door-frame project was expected to start in October 1998.

• Approximately Rs.45 lakh was planned for tube-division energy-saving measures in FY1998-99.