Alkyl Amines Chemicals (506767) Q4 97/98 earnings summary

Executive summary

• FY98 sales rose 23% YoY to Rs.6,009 lakh; higher production and exports were offset by raw-material cost pressure and lower net margins.

• FY98 PBT fell to Rs.489 lakh from Rs.648 lakh and PAT to Rs.429 lakh from Rs.528 lakh; Q1 FY99 provisional PAT was Rs.102 lakh versus Rs.40 lakh YoY.

Financial highlights

• FY98 gross revenue was Rs.6,247 lakh; operating profit before interest, depreciation and tax was Rs.1,177 lakh versus Rs.1,222 lakh in FY97.

• FY98 interest and financial expenses increased to Rs.472 lakh from Rs.389 lakh; depreciation rose to Rs.215 lakh from Rs.185 lakh.

• Q1 FY99 provisional net sales were Rs.1,414 lakh versus Rs.1,022 lakh YoY; PBT was Rs.110 lakh versus Rs.40 lakh.

• FY98 cash from operating operations was Rs.270 lakh versus Rs.532 lakh in FY97; net cash from financing activities was Rs.137 lakh versus Rs.224 lakh.

Outlook and guidance

• Exports remained a growth priority; improved amine output and derivative availability were expected to support further export sales.

• A dedicated 10,000 MTPA ethylamines plant at Kurkumbh was planned for commissioning by end-1999; total amines capacity was expected to reach 25,000–30,000 MT annually.

• Feedstock-plant investment was planned to reduce costs; independent DMCHA facilities were also due to be commissioned shortly.

• Kurkumbh derivative facilities had yet to reach potential, with improved tonnage and contribution expected as investments delivered benefits over coming years.