Apcotex Industries (APCOTEXIND) Q4 04/05 earnings summary

Executive summary

• FY05 gross sales rose to Rs.9,432.30 lakh from Rs.7,833.38 lakh, with value growth above 20% and volume growth of 8%; high input costs constrained operating margins.

• Profit before tax was Rs.184.63 lakh and profit after tax Rs.131.10 lakh; directors recommended a dividend of Rs.1.80 per Rs.10 share.

Financial highlights

• Net sales, after discounts, rebates and excise, were Rs.7,923.83 lakh vs Rs.6,533.16 lakh; other income was Rs.62.52 lakh vs Rs.56.92 lakh.

• Gross profit was Rs.550.38 lakh vs Rs.390.25 lakh; depreciation was Rs.365.75 lakh vs Rs.377.06 lakh.

• Profit before tax was Rs.184.63 lakh vs Rs.13.19 lakh; profit after tax was Rs.131.10 lakh vs Rs.14.17 lakh.

• Materials consumed increased to Rs.5,987.09 lakh from Rs.4,581.43 lakh; manufacturing, administrative, selling and distribution expenses declined to Rs.1,136.02 lakh from Rs.1,330.04 lakh.

Outlook and guidance

• FY06 outlook was cautiously optimistic, with expected support from domestic economic growth and consumer demand, alongside commitment to technology, product quality, cost competitiveness and customer satisfaction.

• Operating conditions were expected to remain challenging in FY06 because of high petrochemical input costs and competition from low-priced South East Asian and Chinese products.