Alkyl Amines Chemicals (506767) Q4 98/99 earnings summary

Executive summary

• Total income rose 38% YoY to Rs 8,612 lacs; profit after tax increased to Rs 1,285 lacs from Rs 429 lacs, supported by higher capacity utilisation, lower costs and improved product mix.

• Directors recommended a 20% final equity dividend in addition to the 20% interim dividend, taking the FY 1998-99 equity dividend to 40%.

Financial highlights

• Sales of manufactured and traded goods totalled Rs 8,159 lacs versus Rs 5,975 lacs; total income was Rs 8,612 lacs versus Rs 6,247 lacs.

• Profit before tax was Rs 1,640 lacs versus Rs 489 lacs; profit after tax was Rs 1,285 lacs versus Rs 429 lacs.

• Profit before interest, depreciation and tax was Rs 2,448 lacs versus Rs 1,177 lacs; interest and financial expenses rose to Rs 554 lacs from Rs 472 lacs.

• Export turnover increased to Rs 2,491 lacs from Rs 1,840 lacs; commission income was Rs 32 lacs.

Outlook and guidance

• Expansion and diversification projects of approximately Rs 40 crore were planned over the next two years.

• A dedicated 10,000 MTPA ethylamines plant at Kurkumbh was targeted for commissioning by March 2000; combined amines capacity was expected to reach 25,000–30,000 MT annually.

• A Kurkumbh hydrogen plant was expected to start by November 1999, with lower production costs anticipated.

• Betaines and other surfactants production through the 50:50 Goldschmidt Alkyl Speciality Chemicals JV was expected to begin in June 1999; initial production would use toll manufacturing at Kurkumbh.