Apcotex Industries (APCOTEXIND) Q4 07/08 earnings summary

Executive summary

• FY08 gross sales rose to Rs.11,899.25 lacs from Rs.9,036.86 lacs; PAT was Rs.487.24 lacs versus Rs.1.33 lacs in FY07.

• Volume growth, product development and efficiency measures supported performance despite input-cost pressure and intense competition.

Financial highlights

• Net sales after discounts, rebates and excise were Rs.10,156.96 lacs versus Rs.7,764.83 lacs; other income was Rs.309.15 lacs versus Rs.216.03 lacs.

• Gross profit was Rs.869.59 lacs versus Rs.212.50 lacs; PBT was Rs.651.56 lacs versus a loss of Rs.59.83 lacs.

• PAT was Rs.487.24 lacs versus Rs.1.33 lacs; basic and diluted EPS was Rs.8.82 versus Rs.0.02.

• Other income included Rs.224.37 lacs surplus on investment sales; prior-year adjustments added Rs.6.32 lacs versus a Rs.47.15-lac deduction in FY07.

Outlook and guidance

• FY09 outlook was cautiously optimistic, but steeply rising petro-based raw-material costs and resistance to price increases were expected to keep margins under pressure.

• Efficiency improvements across operations were planned to mitigate input-cost increases; actual results remained exposed to raw-material availability and prices, demand and regulatory changes.