West Coast Paper Mills (500444) Q4 99/00 earnings summary

Executive summary

• FY00 net profit was Rs 15.20 crore vs Rs 10.48 crore in FY99; stronger market conditions and higher selling prices supported improved profitability.

• Paper and board output eased amid a paper-machine rebuild and labor agitation, while optical fibre cable production and sales expanded sharply.

Financial highlights

• Total income was Rs 374.08 crore vs Rs 345.66 crore; sales were Rs 365.05 crore vs Rs 339.88 crore.

• Profit before tax rose to Rs 18.80 crore from Rs 12.28 crore; net profit was Rs 15.20 crore vs Rs 10.48 crore.

• Gross profit was Rs 28.53 crore vs Rs 22.40 crore; EPS was Rs 17 and total dividend was Rs 4 per share.

Outlook and guidance

• FY01 Q1 paper and paperboard output was 24,128 MT and duplex board output 5,577 MT; both exceeded the corresponding prior-year quarter, with satisfactory productivity and profitability.

• Marginally higher paper production was expected for FY01; buoyant paper markets were expected to support productivity, product range and market expansion.

• The new duplex mill was expected to start in Q2 FY02; the modernisation programme was targeted for completion by Dec 2001.