Galaxy Surfactants (GALAXYSURF) Q4 98/99 earnings summary

Executive summary

• Taloja expansion reached full commercial production in July 1998; 15-month turnover was Rs. 7,799.4 lakh, while higher interest and depreciation reduced net profit YoY.

• Export growth, new markets and full use of Taloja capacity supported operations despite a broad domestic industrial recession.

Financial highlights

• Revenue was Rs. 7,799.4 lakh for 15 months ended June 30, 1999, versus Rs. 3,804.3 lakh for the prior 12 months; periods are not comparable.

• PBIDT was Rs. 1,553.7 lakh versus Rs. 626.1 lakh; reported annualized increase was 98.5%.

• PBT was Rs. 311.8 lakh and net profit Rs. 277.2 lakh, versus Rs. 347.6 lakh and Rs. 311.1 lakh, respectively, in the prior 12 months.

• Interest and finance charges rose to Rs. 815.7 lakh from Rs. 163.6 lakh; depreciation increased to Rs. 426.1 lakh from Rs. 114.9 lakh.

• Interim equity dividend of Rs. 1.20/share plus proposed final dividend of Rs. 0.30/share brings the 15-month total to Rs. 1.50/share; EPS was Rs. 1.95.

Outlook and guidance

• First-quarter sales to September 30, 1999, rose 69% YoY to Rs. 2,723 lakh from Rs. 1,607 lakh; profits were expected to increase in line with turnover.

• Taloja and Tarapur debottlenecking was planned to meet demand and improve operations, funded through internal cash generation and term loans.

• A Bangkok representative office was established to support Southeast Asian and Asian customers through technical services and closer interaction.