Deepak Fertilisers And Petrochemicals (DEEPAKFERT) Q4 02/03 earnings summary

Executive summary

• FY 2002-03 sales including other income rose 7% to Rs.545.97 crore; operating profit increased 24% to Rs.146.03 crore and net profit rose 32% to Rs.64.11 crore.

• Proposed equity dividend increased to 22% from 20%; dividend including corporate dividend tax totals Rs.18.62 crore.

Financial highlights

• Net sales were Rs.522.57 crore versus Rs.493.95 crore; other income increased to Rs.23.40 crore from Rs.18.32 crore.

• Profit before tax was Rs.99.48 crore, including net extraordinary gains of Rs.1.47 crore; profit after tax was Rs.64.11 crore versus Rs.48.64 crore.

• Profit before depreciation rose to Rs.129.16 crore from Rs.96.69 crore; interest and financial charges declined to Rs.16.87 crore from Rs.21.24 crore.

Outlook and guidance

• Full benefits from the commissioned 90,000-tpa ammonium nitrate plant expected in FY 2003-04, subject to gas availability; concentrated nitric acid capacity expansion to 66,000 MT was planned for commissioning in FY 2003-04.

• Additional imported-ammonia storage at JNPT was under consideration, pending environmental clearance; gas supply and LNG or eastern gas availability were expected to improve by FY 2004-05.

• Evaluating PSU disinvestment opportunities and value-added real estate options; Rs.36 crore invested in land for the real estate initiative.