Alkyl Amines Chemicals (506767) Q4 04/05 earnings summary

Executive summary

• FY2004-05 gross total income rose to Rs.11,599 lacs from Rs.10,515 lacs; PBT fell to Rs.347 lacs from Rs.402 lacs, while PAT increased to Rs.290 lacs from Rs.241 lacs.

• Higher raw-material costs, only partly passed through to customers, weighed on profit; a 15% final dividend was recommended for the Silver Jubilee year.

Financial highlights

• Net sales after excise were Rs.9,956 lacs versus Rs.9,115 lacs; gross sales were Rs.11,165 lacs versus Rs.10,158 lacs.

• Operating profit before interest, depreciation and tax was Rs.1,463 lacs versus Rs.1,609 lacs; interest and financial expenses were Rs.617 lacs versus Rs.700 lacs.

• PBT was Rs.347 lacs versus Rs.402 lacs; PAT was Rs.290 lacs versus Rs.241 lacs, after current and deferred tax provisions totaling Rs.58 lacs versus Rs.161 lacs.

• Domestic sales increased 13% to Rs.9,160 lacs; export turnover declined to Rs.1,829 lacs FOB from Rs.1,926 lacs.

• Contract-processing income grew to Rs.197 lacs from Rs.149 lacs; production of amines and derivatives rose to 16,270 MT from 15,219 MT.

Outlook and guidance

• FY2005-06 domestic pharma-sector trends were expected to support sales volumes; exports of basic products looked weak, while newly developed intermediates were expected to lift export volumes.

• Improved local ethyl-alcohol availability was expected to reduce imports and ease raw-material costs; alcohol prices were expected to soften in Q4 FY2005-06.

• Recently commissioned cogeneration capacity and yield, sourcing, marketing and cost-control initiatives were expected to lower costs and help maintain profitability.