Himadri Speciality Chemical (500184) Q4 04/05 earnings summary

Executive summary

• FY 2004-05 turnover rose 10.56% YoY; PBT reached ₹719.58 lakh and PAT ₹574.98 lakh, up 143% and 132%, respectively, as cited in the performance overview.

• A new Mahishtikry unit became operational in late February 2005, adding capacity; a multi-year expansion and diversification program targets growing domestic and export demand.

Financial highlights

• Revenue was ₹15,083.98 lakh, including sales of ₹14,859.23 lakh and other income of ₹224.75 lakh, versus ₹13,643.42 lakh revenue in FY 2003-04.

• PAT was ₹574.98 lakh versus ₹247.81 lakh; proposed dividend was 5%, totaling ₹127.56 lakh.

• Total expenditure was ₹14,364.40 lakh versus ₹13,347.28 lakh; raw-material costs were ₹9,290.93 lakh and power and fuel costs ₹1,215.86 lakh.

• Net cash from operating activities was an outflow of ₹247.35 lakh, versus inflow of ₹523.16 lakh; investing outflow was ₹2,101.89 lakh, funded partly by ₹2,269.06 lakh financing inflow.

Outlook and guidance

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

• The Mahishtikry expansion aims to double current capacity and is expected to be operational by FY 2006-07; full effects of expansion and diversification projects were also expected in that fiscal year.

• Planned projects include a by-products plant at Mahishtikry, a second high-value-products unit at Visakhapatnam, and an export-oriented liquid coal-tar-pitch unit and warehouse at Haldia.