Dhanuka Agritech (507717) Q4 98/99 earnings summary

Executive summary

• FY99 turnover held near the prior year while profit before tax and net profit increased; liquidity pressure from receivables and inventory drove higher borrowing and interest costs.

• New product launches, technical collaborations and branch expansion supported future growth plans; management’s outlook depended partly on a forecast normal monsoon.

Financial highlights

• Sales were ₹34,03,32,242 in FY99 versus ₹33,58,48,033 in FY98; gross turnover was reported at ₹3,403.32 lakh versus ₹3,358.48 lakh.

• Audited profit before tax was ₹2,78,62,330 versus ₹2,65,94,547; profit after tax was ₹2,10,89,786 versus ₹2,05,80,694.

• Gross profit before depreciation was ₹360.92 lakh versus ₹336.61 lakh.

• Interest and finance charges rose to ₹1,90,63,691 from ₹1,21,48,570; the Directors’ Report cited a 61% increase in interest outgo.

• A 20% dividend, equal to ₹2 per equity share, was recommended; proposed dividend was ₹39,60,000, plus ₹3,96,000 dividend tax.

Outlook and guidance

• Outlook for FY00 was described as optimistic, based on a forecast normal monsoon; pesticide industries were expected to register significant growth if rainfall was widespread.

• Kasugamycin 3 SL, a fungicide developed with Hokko Chemical Industry, was expected to launch during FY00; discussions with other multinational partners were ongoing.