Deepak Nitrite (DEEPAKNTR) Q4 97/98 earnings summary

Executive summary

• FY ended Mar 31, 1998 sales reached Rs. 153.69 crore, up 23% YoY; net profit after adjustments was Rs. 5.84 crore versus a Rs. 3.23 crore loss in FY97.

• Modernisation, expanded Nitroaromatics capacity, steadier Taloja production and improved export quality supported the recovery.

Financial highlights

• Sales were Rs. 153.69 crore versus Rs. 125.18 crore; gross profit before interest, depreciation and tax rose to Rs. 26.54 crore from Rs. 16.69 crore.

• Profit before tax and extraordinary items was Rs. 7.49 crore; net profit after prior-year adjustments, extraordinary items and tax was Rs. 5.84 crore.

• Exports increased to Rs. 26.65 crore from Rs. 18.89 crore; export growth qualified the business for Export House status.

• Directors recommended an 18% equity dividend, aggregating Rs. 1.035 crore; EPS was Rs. 10.15 versus Rs. 2.91 in FY97.

Outlook and guidance

• Nitrite Division expected to sustain its improved production levels in FY99 following modernisation and efficiency gains.

• International market expansion remained a priority for Nitroaromatics; Taloja was developing additional hydrogenation-based products at pilot scale.

• R&D plans emphasized value-added downstream products, with intermediates developed in the prior year advanced to pilot-scale production for export.