Dhanuka Agritech (507717) Q4 06/07 earnings summary

Executive summary

• FY 2006-07 merged sales were Rs. 230.38 crore, PBDT Rs. 18.03 crore and PAT Rs. 10.50 crore; on combined prior-year figures, sales rose ~10% and PAT ~28%.

• A 20% final dividend was recommended, in addition to the 20% interim dividend paid in April 2007.

Financial highlights

• Sales were Rs. 230.38 crore versus combined FY 2005-06 sales of Rs. 208.44 crore; prior-year comparison combines the transferor and transferee entities.

• PBDT was Rs. 18.03 crore versus Rs. 14.85 crore on the combined FY 2005-06 basis; PAT was Rs. 10.50 crore versus Rs. 8.19 crore.

• Reported merged accounts show PBT of Rs. 16.31 crore and PAT of Rs. 10.50 crore; FY 2005-06 statement figures are not comparable because they cover only the transferee entity.

Outlook and guidance

• FY 2007-08 outlook was optimistic, with near-normal monsoon conditions expected to support industry growth and moderate pest infestation anticipated.

• Udhampur commercial production was expected to start soon; associated Central Government tax exemptions were expected to improve profitability.

• Margins were expected to remain under pressure from intense competition, even with better weather conditions.