Wendt (India) (505412) Q4 96/97 earnings summary

Executive summary

• FY1996-97 sales and other income rose 11% to Rs. 1,283.81 lakh; profit after tax increased to Rs. 212.49 lakh from Rs. 206.49 lakh.

• ISO 9001 certification, new product deliveries and commissioning of the Diawal-based electroplating plant supported efforts to expand exports and future growth.

Financial highlights

• Sales were Rs. 1,211.93 lakh versus Rs. 1,075.88 lakh; other income was Rs. 59.52 lakh versus Rs. 62.23 lakh.

• Profit before tax was Rs. 302.49 lakh versus Rs. 306.49 lakh; tax provision fell to Rs. 90 lakh from Rs. 100 lakh, lifting PAT to Rs. 212.49 lakh.

• Total expenditure increased to Rs. 981.32 lakh from Rs. 851.33 lakh; depreciation was Rs. 42.43 lakh and interest and finance charges were Rs. 21.82 lakh.

• Operating cash flow was Rs. 235 lakh versus Rs. 137.53 lakh; cash and bank balances closed at Rs. 46.40 lakh versus Rs. 41.69 lakh.

Outlook and guidance

• Vitrified CBN Wheels and Glass Grinding Wheels entered delivery during the year; encouraging product feedback and the new electroplating plant were expected to support growth in coming years.

• ISO 9001 certification was expected to facilitate continuing export-building efforts.