Wendt (India) (505412) Q4 99/00 earnings summary

Executive summary

• FY00 sales and other income reached Rs 1,839.60 lacs, up 22% YoY; profit before tax rose 10% to Rs 423.29 lacs after developmental spending on new products.

• Profit after tax was Rs 308.29 lacs, with EPS of Rs 30.83; total dividend recommended was Rs 9 per share, or 90% of face value.

Financial highlights

• Sales including machining charges were Rs 1,770.46 lacs; other income was Rs 69.14 lacs, taking total income to Rs 1,839.60 lacs versus Rs 1,511.90 lacs in FY99.

• PBT increased to Rs 423.29 lacs from Rs 383.16 lacs; tax provision was Rs 115.00 lacs and PAT was Rs 308.29 lacs versus Rs 283.16 lacs.

• Raw material costs were Rs 600.04 lacs; employees cost Rs 183.92 lacs; other costs Rs 366.74 lacs; depreciation Rs 65.77 lacs and interest Rs 10.39 lacs.

Outlook and guidance

• With the Indian economy showing signs of recovery from the prior two-year recession, management expressed confidence in achieving continued growth in coming years.

• Developmental spending on new products was cited alongside the 10% increase in PBT, indicating continued investment in product development.