Coromandel International (COROMANDEL) Q4 98/99 earnings summary

Executive summary

• FY1998-99 delivered record turnover of Rs.484.47 crore, PAT of Rs.46.87 crore and EPS of Rs.19.27; profitability improved for the fifth consecutive year.

• Phosphoric acid output reached a record 121,007 MT; the year also included the shutdown and write-off of the obsolete, energy-intensive urea plant.

Financial highlights

• Turnover reached Rs.484.47 crore, versus Rs.472.53 crore in FY1997-98; FY1998-99 PAT was Rs.46.87 crore and EPS was Rs.19.27.

• Net worth rose to Rs.193.04 crore; a 50% dividend was recommended on reduced equity following the buyback offer, versus 30% in the prior year.

• Adjusted for the catalyst accounting change, FY1998-99 profit would have been Rs.2.466 crore higher; revised depreciation rates on certain assets increased the charge by Rs.0.770 crore.

• A Rs.15.008 crore urea subsidy claim was withheld and provided for as a reduction in subsidy income; a representation seeking reversal remained pending.

Outlook and guidance

• Third Complex Granulation Train was expected to commission by July 2000, taking capacity to 5.50 lakh tonnes annually; retrofit of the existing trains was planned by Q2 2001.

• Priorities included SAP R/3 implementation, ISO 9002 accreditation, energy conservation, lower emissions, improved safety and stronger farmer engagement.