Himadri Speciality Chemical (500184) Q4 02/03 earnings summary

Executive summary

• FY ended 31 Mar 2003 turnover rose 38.88% to Rs 10,853.13 lakh; PBT increased 179.18% to Rs 206.82 lakh, supported by higher sales and operating efficiencies.

• Profit after tax reached Rs 170.70 lakh versus Rs 72.18 lakh; no dividend was recommended to preserve working capital for higher operating volumes and expansion.

Financial highlights

• Sales were Rs 10,690.27 lakh versus Rs 7,724.79 lakh; other income was Rs 162.86 lakh versus Rs 90.07 lakh.

• Manufacturing and other expenses rose to Rs 10,147.21 lakh from Rs 7,329.95 lakh; interest and other financial charges were Rs 271.64 lakh, including Rs 159.31 lakh of debenture discount amortization.

• Cash flow from operations was an outflow of Rs 43.26 lakh versus an outflow of Rs 440.47 lakh; cash and cash equivalents ended at Rs 475.40 lakh versus Rs 242.23 lakh.

Outlook and guidance

• A new, modern West Bengal plant was expected to begin trial runs by the end of FY 2003-04; commercial production was forecast by the end of the following financial year.

• Once commissioned, the new plant was expected to more than double aggregate capacity and enable exports after domestic demand was met.

• Management expected to maintain growth with progressively improved profitability, barring unforeseen circumstances, while developing Mesophase Pitch, Carbon Fibre and Needle Coke.