Dhanuka Agritech (507717) Q4 02/03 earnings summary

Executive summary

• FY2002-03 gross turnover reached Rs. 30.16 crore, up 4.35% YoY, and the year moved back to profit after a prior-year loss despite adverse monsoon conditions.

• Cost controls, lower interest expense and better inventory and receivables management supported the recovery; a 10% dividend was recommended.

Financial highlights

• Gross turnover was Rs. 30.16 crore versus Rs. 28.91 crore in FY2001-02; growth was 4.35% YoY.

• Profit before tax was Rs. 72.86 lakh versus a loss of Rs. 57.36 lakh; profit after tax was Rs. 45.95 lakh versus a loss of Rs. 37.17 lakh.

• Interest and finance charges fell to Rs. 1.10 crore from Rs. 1.87 crore.

• Proposed dividend was 10%, absorbing Rs. 19.80 lakh, with dividend tax of Rs. 2.54 lakh.

Outlook and guidance

• FY2003-04 outlook was described as optimistic, with a normal monsoon forecast and timely monsoon arrival across almost all states; Q1 sales volume was reported as good.

• Wider product acceptance and aggressive marketing were expected to lift demand; management planned further cost reduction and interest-rate negotiations.