Welspun Living (WELSPUNLIV) Q4 97/98 earnings summary

Executive summary

• FY98 turnover reached Rs.16,057.29 lacs vs Rs.15,034.58 lacs; profit after tax was Rs.774.50 lacs vs Rs.731.53 lacs.

• Production growth, export gains and higher terry-towel unit value realization supported performance amid weak global trade and economic uncertainty.

Financial highlights

• Sales and services were Rs.16,057.29 lacs vs Rs.15,034.58 lacs; total income was Rs.16,810.96 lacs vs Rs.14,660.90 lacs.

• Profit before tax and profit after tax were each Rs.774.50 lacs, versus PBT of Rs.763.53 lacs and PAT of Rs.731.53 lacs in FY97; no tax provision was recorded.

• Finance expenses increased to Rs.2,356.24 lacs from Rs.1,976.21 lacs; depreciation rose to Rs.1,606.66 lacs from Rs.1,002.14 lacs.

• Proposed equity dividend was Rs.1.50 per share, aggregating Rs.200.62 lacs; preference dividend paid was Rs.134.93 lacs.

Outlook and guidance

• Plans to add bedsheet, kitchen-linen and furnishing-fabric manufacturing facilities; project cost and financing details were still being developed.

• Ongoing priorities included product-design development, quality and design upgrades, export-market development, ISO 14000 certification and international quality marks for cotton yarn.