Apcotex Industries (APCOTEXIND) Q4 03/04 earnings summary

Executive summary

• Gross sales rose 24.9% YoY to Rs.7,833.38 lakh, but PBT fell to Rs.13.19 lakh from Rs.183.55 lakh as higher input costs squeezed margins.

• PAT was Rs.14.17 lakh versus Rs.88.09 lakh; EPS declined to Rs.0.26 from Rs.1.59.

• A 10% dividend of Rs.1 per share was recommended; FY2004-05 outlook remained cautious amid rising raw-material prices and import competition.

Financial highlights

• Gross sales increased 24.9% YoY to Rs.7,833.38 lakh from Rs.6,272.26 lakh; net sales after discounts, rebates and excise were Rs.6,533.16 lakh versus Rs.5,255.82 lakh.

• PBT declined to Rs.13.19 lakh from Rs.183.55 lakh; PAT was Rs.14.17 lakh versus Rs.88.09 lakh.

• Prior-year adjustments added Rs.26.81 lakh in FY2003-04 versus a Rs.9.51 lakh deduction in FY2002-03; period profit was Rs.40.98 lakh versus Rs.78.58 lakh.

• Materials consumed rose to Rs.4,581.43 lakh from Rs.3,164.26 lakh, while manufacturing, administrative, selling and distribution expenses were Rs.1,355.43 lakh versus Rs.1,388.60 lakh.

Outlook and guidance

• FY2004-05 was expected to be progressive for the economy, but operating conditions were projected to remain challenging as petroleum-linked raw-material prices rose.

• Demand for everyday footwear, paper and board coatings, textiles, carpets and construction applications was expected to benefit from economic activity and consumer demand.

• Technology upgrades, product innovation, quality consistency and development of additional product uses were identified as priorities for competitiveness.