Dhanuka Agritech (507717) Q4 01/02 earnings summary

Executive summary

• FY2001-02 gross turnover was Rs. 2,890.60 lakh versus Rs. 3,052.05 lakh; net loss narrowed to Rs. 57.47 lakh from Rs. 171.23 lakh.

• A Rs. 41.63 lakh provision for Haryana Local Area Development Tax and deferred sales of Caldan 4G weighed on fourth-quarter performance.

• No dividend was recommended because of the year’s loss.

Financial highlights

• Sales were Rs. 28,90,59,521 in FY2001-02 versus Rs. 30,52,05,076 in FY2000-01; reported turnover decline was approximately 5%.

• Loss before tax was Rs. 57.36 lakh versus Rs. 169.02 lakh; loss after tax was Rs. 37.17 lakh versus Rs. 171.23 lakh.

• Interest and finance charges fell to Rs. 186.87 lakh from Rs. 275.07 lakh; manufacturing, administrative and other expenses declined to Rs. 742.35 lakh from Rs. 839.80 lakh.

• Management attributed the narrower loss to reductions in administration expenses and interest costs, despite lower sales.

Outlook and guidance

• FY2002-03 began with higher sales volume and profitability, but delayed monsoon, drought in some regions and flooding in the east weakened the outlook.

• Import licence for Targa Super, a soybean weedicide, increased to 125 KL from 10 KL; initial demand was strong, with pending orders reported.

• Normal monsoon in some areas supported higher sales volumes there; irrigation expansion, export demand for eco-friendly molecules and productivity needs were cited as growth drivers.

• Management expected productivity, market-share and cost initiatives to help restore positive profitability, while recognizing weather dependence.