Himadri Speciality Chemical (500184) Q4 03/04 earnings summary

Executive summary

• FY04 gross turnover rose more than 25% YoY; PBT increased 43.19% and PAT 45.18%, supported by higher operating efficiency.

• Expansion at the Durgapur Expressway site was planned to start commercial production by end-September 2004, with capacity expected to more than double.

Financial highlights

• Gross turnover was Rs 13,643.42 lakh vs Rs 10,853.13 lakh; sales were Rs 13,390.20 lakh vs Rs 10,690.27 lakh.

• PBT was Rs 296.14 lakh vs Rs 206.82 lakh; PAT was Rs 247.81 lakh vs Rs 170.70 lakh.

• Other income rose to Rs 253.22 lakh from Rs 162.86 lakh, including Rs 133.41 lakh of sales-tax remission.

• Operating cash flow was Rs 523.16 lakh vs an outflow of Rs 80.22 lakh; investing outflow was Rs 1,785.16 lakh, largely reflecting fixed-asset additions.

Outlook and guidance

• Durgapur Expressway unit commercial production was scheduled for end-September 2004; successful commissioning was expected to more than double total capacity.

• Management expected to maintain growth with progressively improved profitability, barring unforeseen circumstances.

• Three trial shipments to Brazil, Egypt and South Africa received encouraging feedback; long-term supply contracts were being pursued.

• R&D plans included development of Mesophase Pitch, Carbon Fibre and Needle Coke.