Alkyl Amines Chemicals (506767) Q4 96/97 earnings summary

Executive summary

• FY1996-97 gross sales rose 13% to Rs.4,879 lacs; profit before tax increased 34% to Rs.648 lacs and net profit rose 9% to Rs.528 lacs.

• Operating expansion centered on new amine-derivative plants at Kurkumbh, with additional capacity projects planned; a 1:1 bonus issue and dividends were recommended for shareholder approval.

Financial highlights

• Total income was Rs.4,998.04 lacs versus Rs.4,416.62 lacs in FY1995-96; gross sales were Rs.4,879.01 lacs versus Rs.4,301.89 lacs.

• Profit before tax was Rs.648.13 lacs versus Rs.483.25 lacs; profit after tax was Rs.527.93 lacs versus Rs.483.25 lacs.

• EPS was Rs.17.62 on a weighted-average basis; equity dividend of 25% was recommended, with pro-rata eligibility for shares allotted in August 1996.

• Exports of amines were valued at Rs.1.86 crore; foreign-currency use was Rs.307 lacs, mainly for imported stores, spares and raw materials.

Outlook and guidance

• A dedicated 10,000 MTPA ethylamines plant at Kurkumbh was proposed; this is expected to improve quality, yields and costs, while Patalganga methylamines capacity is expected to reach ~10,000 MT annually.

• Downstream plants are planned at Kurkumbh to supply inputs to multipurpose plants and further reduce derivative costs.

• Export sales were expected to rise with improved Patalganga operations and availability of derivatives from Kurkumbh.

• Further growth in speciality chemicals representation was anticipated, with a possible manufacturing joint venture at a future date.