Aegis Logistics (AEGISLOG) Q4 99/00 earnings summary

Executive summary

• FY00 profit after tax rose 49% YoY to Rs. 3.28 crore; pre-tax profit increased 23% to Rs. 5.32 crore.

• Focus shifted toward logistics, storage and distribution after divestment of the main chemical manufacturing activities; FY00 comparisons are affected by the prior-year Petrochem division transfer.

Financial highlights

• Sales and other income was Rs. 54.66 crore versus Rs. 67.52 crore; prior-year figures include five months of the Petrochem division and are not strictly comparable.

• EBITDA, before interest, tax, depreciation and provisions, was Rs. 10.49 crore; interest expense was Rs. 2.21 crore and depreciation Rs. 2.96 crore.

• Net profit margin was 6%; EPS rose to Rs. 2.24 from Rs. 1.61, and a Rs. 0.70/share dividend was recommended, unchanged YoY.

Outlook and guidance

• Liquid Terminal capacity expansion of 40%, from 90,000 KL to 130,000 KL, was scheduled for completion in 2001/02; higher capacity and pipeline evacuation were expected to lift earnings.

• Strong growth in logistics and distribution demand was expected over the next five years, supported by new petrochemical crackers and industrial use of petroleum, gas and chemicals in western India.

• LPG marketing and distribution plans targeted industrial, commercial and domestic customers; outlook depended partly on anticipated APM dismantling in 2002 and growing LPG demand.