Tube Investments of India (TIINDIA) Q4 98/99 earnings summary

Executive summary

• FY ended Mar. 31, 1999 sales rose 11% YoY to Rs. 67,735 lakh; profit after tax increased 32% to Rs. 2,108 lakh, supported by productivity and cost reduction.

• Market share increased in bicycles and tubes despite recessionary conditions in major customer segments.

• A voluntary retirement scheme reduced workforce by 776 employees, or about 14%.

Financial highlights

• Sales were Rs. 67,735 lakh vs. Rs. 60,793 lakh; gross profit Rs. 6,936 lakh vs. Rs. 5,637 lakh.

• Profit before extraordinary item and tax was Rs. 2,611 lakh; after Rs. 461 lakh of VRS expense, PBT was Rs. 2,150 lakh vs. Rs. 1,744 lakh.

• Net profit was Rs. 2,108 lakh vs. Rs. 1,602 lakh; EPS was Rs. 8.56.

• Other income increased to Rs. 1,491 lakh from Rs. 934 lakh; interest expense was Rs. 2,101 lakh and depreciation Rs. 2,223 lakh.

Outlook and guidance

• Door-frame operations for Hyundai and Maruti had begun regular commercial supplies; increased activity was expected in subsequent years.

• Productivity and cost-reduction initiatives in Engineering were expected to yield benefits from the coming year.

• Y2K readiness was targeted for August 1999; estimated remediation cost was Rs. 125 lakh, of which Rs. 97 lakh had been spent.

• Planned FY 1999-2000 energy-saving investment was approximately Rs. 234 lakh.