Apcotex Industries (APCOTEXIND) Q4 01/02 earnings summary

Executive summary

• FY2001-02 returned to profitability: gross sales rose 21.62% YoY to Rs 6,738.17 lakh; net profit was Rs 301.97 lakh versus a loss of Rs 296.28 lakh.

• Cost controls, process improvements, product quality upgrades and new grades supported the turnaround despite weak demand and intense competition.

Financial highlights

• Net sales, after discounts and excise duty, were Rs 5,644.89 lakh versus Rs 4,709.27 lakh; other income was Rs 56.36 lakh versus Rs 117.56 lakh.

• PBT was Rs 576.35 lakh versus a loss of Rs 296.08 lakh; PAT was Rs 301.97 lakh versus a loss of Rs 296.28 lakh.

• Deferred tax expense of Rs 227.88 lakh and tax provision of Rs 46.50 lakh reduced FY net profit; prior-year adjustments added Rs 48.32 lakh to distributable profit.

• Operating cash flow was Rs 959.49 lakh, compared with cash outflow of Rs 23.35 lakh in FY2000-01.

Outlook and guidance

• Outlook was cautiously optimistic, conditional on continued productivity, quality, optimal sourcing and cost-containment efforts; market recovery remained uncertain.

• Management expected improved processes and performance measures to support results in a fiercely competitive environment, barring unforeseen events.