Dhanuka Agritech (507717) Q4 99/00 earnings summary

Executive summary

• FY00 gross turnover rose to Rs 3,491.82 lakh from Rs 3,403.32 lakh; PBT fell to Rs 241.19 lakh from Rs 278.62 lakh and PAT to Rs 173.59 lakh from Rs 210.90 lakh.

• Performance held up amid weak pesticide demand, but slow receivable collections and high inventory increased interest costs and pressured profitability.

Financial highlights

• Gross profit before depreciation was Rs 360.92 lakh vs Rs 317.99 lakh; depreciation was Rs 75.68 lakh, interest and finance charges Rs 282.39 lakh, and tax provision Rs 67.50 lakh.

• EPS was Rs 8.77; proposed dividend remained Rs 2 per share, or 20%, with dividend tax of Rs 8.71 lakh.

• Closing P&L surplus carried forward was Rs 528.28 lakh, after Rs 22.50 lakh transferred to general reserve and Rs 39.60 lakh proposed dividend.

Outlook and guidance

• Normal monsoon expectations supported an optimistic FY01 outlook, with broad-based growth anticipated for the monsoon-dependent pesticide industry.

• Two eco-friendly, safer molecules were planned through multinational tie-ups; Methomyl 40 SP was expected to replace banned Methomyl 12.5L during the year.

• Methomyl 12.5L inventory could be sold through 25 March 2002; wider acceptance of existing products and aggressive marketing were expected to lift demand.