Apcotex Industries (APCOTEXIND) Q4 00/01 earnings summary

Executive summary

• Gross sales rose 11.34% YoY to Rs 5,540.44 lacs, but the year ended with a net loss of Rs 296.28 lacs; improved Q4 operating performance generated a small cash profit for the year.

• Margin pressure from higher input costs and imported rubber and latex sold at dumping prices persisted through much of the year; cost reductions and better sales realisation supported the Q4 improvement.

Financial highlights

• Net sales, net of discounts and excise duty, increased to Rs 4,709.27 lacs from Rs 4,137.85 lacs; gross sales were Rs 5,540.44 lacs versus Rs 4,976.17 lacs.

• Gross profit before depreciation was Rs 75.17 lacs, down from Rs 377.48 lacs; loss before tax was Rs 296.08 lacs versus profit of Rs 30.71 lacs.

• Net loss was Rs 296.28 lacs versus net profit of Rs 30.41 lacs; prior-year adjustments were a Rs 9.63 lacs charge, and the accumulated loss carried forward was Rs 216.78 lacs.

• Depreciation rose to Rs 371.25 lacs from Rs 346.77 lacs; interest and financing charges increased to Rs 184.88 lacs from Rs 125.36 lacs.

• No dividend was recommended for FY2000-01, compared with Rs 69.09 lacs paid for FY1999-2000.

Outlook and guidance

• Directors viewed the current year’s prospects with optimism, barring unforeseen events.

• Accenture was commissioned to develop a robust business strategy for the changing business environment; product quality, new latex grades, cost reduction and measures to address overseas competition were already being pursued.