Wendt (India) (505412) Q4 98/99 earnings summary

Executive summary

• FY ended 31 Mar 1999 sales and other income rose 15% to Rs 1,512.51 lakh; profit after tax increased 22% to Rs 283.16 lakh, supported by cost reduction and improved operating efficiency.

• New products and expanded electroplating capacity supported growth despite an industrial slowdown affecting user industries.

Financial highlights

• Sales were Rs 1,419.41 lakh and machining charges Rs 27.67 lakh; other income was Rs 65.43 lakh, bringing total income to Rs 1,512.51 lakh.

• Profit before tax was Rs 383.16 lakh versus Rs 312.61 lakh; profit after tax was Rs 283.16 lakh versus Rs 232.61 lakh.

• Exports increased 7% to Rs 244.54 lakh from Rs 228.50 lakh.

• Net worth was Rs 1,084.73 lakh at 31 Mar 1999, compared with Rs 884.82 lakh a year earlier.

Outlook and guidance

• Reverse-plated diamond dressing rolls, electroplated marble-saw beads, ceramic-tile calibrating wheels and piston grinding wheels were received well in the market.

• TQM initiatives, customer-satisfaction work and cost-effective customer solutions were intended to drive continuous improvement and business excellence.

• Y2K compliance was targeted by June 1999, at an estimated cost of Rs 2.50 lakh.