Dhanuka Agritech (507717) Q4 97/98 earnings summary

Executive summary

• FY1997-98 set new performance records: turnover rose 36% YoY to Rs 335.85m and net profit more than doubled to Rs 20.58m.

• Results advanced despite setbacks across much of the pesticide industry; the board recommended a 20% dividend, equal to Rs 2 per share.

Financial highlights

• Sales were Rs 335.85m vs Rs 246.71m in FY1996-97; profit before tax was Rs 26.59m vs Rs 14.18m.

• Net profit was Rs 20.58m vs Rs 9.68m; FY1997-98 included Rs 44,409 of liabilities written back, Rs 165,132 in excess prior-year tax provisions written back and a Rs 23,394 prior-year adjustment.

• Gross profit before depreciation was Rs 33.66m vs Rs 19.32m; proposed dividend was Rs 3.96m, with Rs 0.40m dividend tax.

• Operating cash flow was Rs 17.01m; cash and cash equivalents closed at Rs 16.01m vs Rs 9.57m a year earlier.

Outlook and guidance

• Management expected favorable monsoon conditions to support significant growth in the pesticide industry during FY1998-99.

• Aggressive marketing and new product launches were expected to support further turnover and profitability growth; Kasugamycin fungicide launch was targeted by end-1998.