Dhanuka Agritech (507717) Q4 04/05 earnings summary

Executive summary

• FY05 gross turnover rose 86.57% YoY to Rs 6,147.59 lakh; PBT increased 130% to Rs 543.77 lakh, with growth led by DHAWA and strong TARGA SUPER demand.

• PAT was Rs 339.36 lakh and EPS Rs 17.14; the board recommended a 20% final dividend after paying a 20% interim dividend.

Financial highlights

• Sales were Rs 614.76 million versus Rs 329.50 million in FY04; gross turnover was reported at Rs 6,147.59 lakh, up 86.57% YoY.

• PBT increased to Rs 543.77 lakh from Rs 232.89 lakh; PAT rose to Rs 339.36 lakh from Rs 147.10 lakh.

• Raw material consumed reached Rs 2,029.37 lakh versus Rs 1,338.08 lakh; manufacturing, administrative and other expenses were Rs 1,292.86 lakh versus Rs 872.97 lakh.

• Operating cash flow was negative Rs 435.18 lakh, versus positive Rs 1,191.40 lakh in FY04, amid increased inventory and receivables.

Outlook and guidance

• Normal monsoon was forecast with a delayed onset; management expected strong agri-input growth and a bright outlook for the year ahead.

• DHAWA was expected to grow further with increased cotton acreage; TARGA SUPER consumption was trending upward, with continued market expansion and more aggressive marketing planned.

• A DuPont-collaboration fungicide was expected to launch shortly; no numerical earnings guidance was stated.