Welspun Corp (532144) Q4 99/00 earnings summary

Executive summary

• For the seven months ended 31 March 2000, sales were Rs.5,756.53 lakh and net profit after interest and depreciation was Rs.32.08 lakh; the prior comparison covers 17 months and is not comparable.

• Directors recommended no dividend, citing inadequate profits.

Financial highlights

• Sales and services: Rs.5,756.53 lakh; other income: Rs.22.64 lakh; profit before tax: Rs.32.08 lakh for the seven-month period.

• Net profit after prior-year adjustment was Rs.32.08 lakh, versus a net loss of Rs.381.55 lakh in the prior 17-month period.

• Production was 25,613 MT; sales were Rs.5,756.53 lakh, versus production of 17,413 MT and sales of Rs.4,143.06 lakh in the prior 17-month period.

• EPS was Rs.0.02 and dividend rate was nil.

Outlook and guidance

• Management expected the new SAW pipe plant to materially improve current-year financial performance following commercial production commencement on 30 June 2000.

• Enhanced capacity of 200,000 tonnes per annum and a healthy order book positioned the business to pursue expected demand growth.

• In the first two months of the current year, production was 13,062 MT, sales were 12,608 MT and sales value was Rs.2,847 lakh.