Alkyl Amines Chemicals (506767) Q4 03/04 earnings summary

Executive summary

• FY04 standalone gross total income was ₹10,515 lakh, broadly flat YoY; PBT fell to ₹402 lakh from ₹567 lakh and PAT to ₹241 lakh from ₹331 lakh.

• Production rose to 15,219 MT from 14,706 MT, while manufactured amines and derivatives sales remained flat at ~₹100 crore.

• Recommended dividend: ₹1.20 per ₹10 equity share, or 12%; total payout including dividend tax was ₹1.20 crore.

Financial highlights

• Standalone net sales after excise were ₹9,114.60 lakh vs ₹9,175.82 lakh; other income was ₹333.89 lakh vs ₹285.76 lakh.

• Operating profit before interest, depreciation and tax was ₹1,609 lakh vs ₹1,865 lakh; interest and financial expenses fell to ₹700 lakh from ₹836 lakh.

• Adjusted PBT before the ₹27.64 lakh VRS extraordinary charge was ₹430.09 lakh vs ₹567.39 lakh; reported PBT was ₹402.45 lakh.

• PAT was ₹241.31 lakh vs ₹331.39 lakh; basic and diluted EPS was ₹2.72 vs ₹3.74.

• Exports (FOB) fell to ₹1,926 lakh from ₹2,791 lakh; exports were affected by lower volumes and weaker dollar realization.

Outlook and guidance

• FY05 priorities: consolidate domestic market share, expand exports through new products, and pursue higher volumes as pharma demand improves.

• Ethyl alcohol costs had risen and raw-material prices were expected to remain on an upward trend; imports were being pursued to offset domestic alcohol costs.

• Higher plant volumes, custom manufacturing, yield improvement, cost control and better sourcing were expected to support performance; competition remained a potential drag.

• Cogeneration benefits were expected in H2 FY05 and future years, lowering fuel and power costs and improving product competitiveness.