West Coast Paper Mills (500444) Q4 97/98 earnings summary

Executive summary

• FY98 sales rose 9% to Rs 325.64 crore, while net profit fell to Rs 6.19 crore from Rs 8.79 crore amid market glut, discounting and higher input costs.

• Paper and paper-board production increased to 92,889 MT; duplex-board output rose to 18,486 MT as the new machine gained traction.

Financial highlights

• Total income was Rs 331.30 crore versus Rs 297.52 crore; PBT fell to Rs 7.39 crore from Rs 10.14 crore and net profit to Rs 6.19 crore from Rs 8.79 crore.

• Gross profit was Rs 16.45 crore versus Rs 18.07 crore; depreciation rose to Rs 9.06 crore from Rs 7.93 crore.

• Paper and board sales, including excise duty, reached Rs 296.43 crore versus Rs 272.05 crore; total paper and duplex-board sales volume increased to 110,870 MT.

Outlook and guidance

• Paper and board demand was expected to improve in H2, with working results potentially improving thereafter; the first four months showed paper output of 30,449 MT and duplex-board output of 7,256 MT.

• Exports were expected to improve after FY98 exports fell to 82 MT worth Rs 25.31 lakh from 771 MT worth Rs 205.03 lakh.

• The 4 MW multi-fuel plant was expected to be commissioned by December 1998; self-sufficiency in power was anticipated once it began operations.