Aegis Logistics (AEGISLOG) Q4 97/98 earnings summary

Executive summary

• FY98 trading was difficult: gross turnover fell to Rs 106.31 crore from Rs 114.09 crore; net profit was Rs 0.63 crore versus Rs 5.00 crore.

• Petrochemicals remained the strongest division, while chemical storage and oleochemicals faced lower volumes, export weakness and cost pressure.

Financial highlights

• Operating revenue was Rs 103.14 crore versus Rs 109.07 crore; total income was Rs 106.31 crore versus Rs 114.09 crore.

• Profit before tax was Rs 1.27 crore versus Rs 8.37 crore; net profit was Rs 0.63 crore versus Rs 5.00 crore.

• Interest expense declined to Rs 5.65 crore from Rs 7.11 crore; depreciation was Rs 3.98 crore versus Rs 3.84 crore.

Outlook and guidance

• Next-year revenue growth depends on Indian economic recovery; lower costs are expected to support short-term earnings.

• Planned oleochemicals cost cuts target power, utilities, fixed costs and direct material costs through bulk raw-material purchasing.

• Petrochemicals JV with Perstorp AB is expected to support substantial profit growth in coming years.