Galaxy Surfactants (GALAXYSURF) Q4 01/02 earnings summary

Executive summary

• Nine-month period to 31 Mar 2002 marked consolidation after expansion and merger integration; sales were Rs 8,955.65 lakh and net profit after tax Rs 708.69 lakh.

• Despite a domestic slowdown and volatile conditions, new-market wins, exports, cost reduction and productivity gains supported performance.

Financial highlights

• Sales Rs 8,955.65 lakh versus Rs 10,756.01 lakh for the prior 12 months; management cited 11% annualised sales growth. Periods are not directly comparable.

• Profit before interest and depreciation Rs 1,924.05 lakh; interest Rs 712.48 lakh; depreciation Rs 450.88 lakh; PBT Rs 760.69 lakh; net profit after tax Rs 708.69 lakh.

• Net profit after tax was Rs 267.26 lakh in the prior 12-month period; current-period profit comparisons are affected by the shorter reporting period.

• Q1 to 30 Jun 2002 sales Rs 3,545 lakh versus Rs 3,041 lakh YoY, a reported value growth of 16.5%.

Outlook and guidance

• Domestic economic slowdown was expected to continue, making topline growth challenging; priorities were new products, export expansion, cost reduction and productivity.

• Export ambition: international business to contribute 25% of sales; management expected a significant step-up in exports in coming years.

• Total Productive Maintenance implementation was advancing toward a TPM award target in 2003.