Deepak Nitrite (DEEPAKNTR) Q4 99/00 earnings summary

Executive summary

• Sales and other income rose to Rs. 177,51,56,413 from Rs. 162,91,69,654; net profit after adjustments increased to Rs. 11,30,33,830 from Rs. 11,21,95,658.

• Profitability faced pressure from cheaper imports, sluggish domestic demand and higher fuel, energy and raw-material costs, despite marginally improved turnover and sustained production.

Financial highlights

• Sales were Rs. 174,11,81,498 versus Rs. 159,85,44,344; other income was Rs. 3,39,74,915 versus Rs. 3,06,25,310.

• Gross profit before interest, depreciation and tax declined to Rs. 28,48,28,822 from Rs. 31,55,39,348; profit before tax was Rs. 12,62,83,830 versus Rs. 12,56,95,658.

• Net profit after tax and adjustments was Rs. 11,30,33,830 versus Rs. 11,21,95,658; EPS was Rs. 19.66, up from Rs. 19.51.

Outlook and guidance

• Plans include new products through upward integration, leveraging existing process expertise and R&D, with in-house pilot facilities supporting overseas customer trials.

• Maximum capacity utilisation remains a focus; export markets and higher-value products are priorities amid tougher domestic conditions.

• Several products developed in the R&D laboratory and scaled up at the new pilot plant were expected to be introduced during FY 2000-01.