Coromandel International (COROMANDEL) Q4 96/97 earnings summary

Executive summary

• Second consecutive year of strong results after the 1994-95 turnaround; cost controls and other income supported performance.

• Fertiliser production and GROMOR sales reached record levels, with production up to 395,493 MT from 369,080 MT and sales up to 386,662 MT from 344,006 MT.

Financial highlights

• Sales were Rs 30,691.39 lacs vs Rs 31,183.37 lacs YoY; government subsidies rose to Rs 6,495.10 lacs from Rs 2,052.00 lacs.

• Profit before tax was Rs 4,017.50 lacs vs Rs 2,701.58 lacs; net income was Rs 2,922.50 lacs vs Rs 2,336.58 lacs.

• Manufacturing and other expenses included a net Rs 600 lacs provision/write-off for government subsidies after Rs 410 lacs of prior-year provision was written back.

Outlook and guidance

• 1997-98 sales strategy targets an optimum mix of NP and NPK fertilisers at competitive prices in marketing areas.

• A three-year programme aims to enhance capacity and efficiency through plant modernisation, process-control upgrades and product optimisation.