Best Agrolife (539660) Q4 09/10 earnings summary

Executive summary

• FY10 profit after tax rose to Rs 97,686 from Rs 90,856; total income increased to Rs 1,566,940 from Rs 921,574.

• Management aimed to retain earnings for operations and did not recommend a dividend; it expected stronger profits and returns from financing demand and rising interest rates.

Financial highlights

• Total income was Rs 1,566,940, comprising interest received of Rs 1,542,940 and profit on sale of investments of Rs 24,000, versus Rs 921,574 in FY09.

• Profit before depreciation and tax was Rs 169,767 versus Rs 163,066; profit before tax was Rs 146,320 versus Rs 133,394.

• Profit after tax was Rs 97,686 versus Rs 90,856, after tax provision of Rs 45,000 and deferred tax charge of Rs 2,287 in FY10.

• Administrative and other expenses increased to Rs 795,487 from Rs 449,116; personnel expenses rose to Rs 601,686 from Rs 309,392.

Outlook and guidance

• Management expected profits to increase versus FY09, supported by professional human resources and adequate funds to meet rising finance demand.

• New business opportunities were expected to enhance profits and shareholder returns; rising interest rates were viewed as a potential source of stronger returns.