West Coast Paper Mills (500444) Q4 00/01 earnings summary

Executive summary

• FY01 reached record production, turnover and profitability; paper and paperboard volumes rose 9% YoY, while duplex board output slipped 2%.

• Net profit was Rs 28.48 crore versus Rs 15.20 crore in FY00; directors recommended a Rs 5/share dividend, equal to 50%.

Financial highlights

• Total income was Rs 421.54 crore versus Rs 374.08 crore; sales were Rs 413.63 crore versus Rs 365.05 crore.

• Gross profit was Rs 48.26 crore versus Rs 28.53 crore; PBT was Rs 37.98 crore versus Rs 18.80 crore; net profit was Rs 28.48 crore versus Rs 15.20 crore.

• Paper and board sales, including excise duty, were Rs 351.35 crore versus Rs 304.78 crore; total paper/board and duplex board sales volume was 113,864 MT versus 116,072 MT.

• Inventories rose to Rs 84.76 crore from Rs 52.83 crore; net current assets increased to Rs 94.37 crore from Rs 48.81 crore.

Outlook and guidance

• Q1 FY02 paper and paperboard output was 24,520 MT versus 24,128 MT; duplex board output was 4,874 MT versus 5,557 MT, with first-quarter results described as satisfactory.

• Sluggish paper markets and international pulp and paper price declines were expected to pressure sales realisations and margins; lower raw-material costs and revised sale prices could aid duplex board.

• The new 100 TPD duplex board mill was expected to commission in Q3 FY02; brown-stock washing and causticizing projects were expected in Q4 FY02.