Himadri Speciality Chemical (500184) Q4 06/07 earnings summary

Executive summary

• FY07 delivered strong growth: total income rose 88.43% to Rs 32,921.12 lac, EBITDA 153.32% to Rs 10,363.07 lac and PAT 156.11% to Rs 6,156.99 lac.

• Domestic coal tar pitch market share was ~70%; strategy shifted toward global expansion, value-added products and advanced carbon materials.

Financial highlights

• Gross turnover increased 88.76% to Rs 39,069.98 lac; net sales reached Rs 32,598.32 lac, up 88.93% YoY.

• Operating profit rose 153.32% to Rs 10,363.07 lac; PBT was Rs 8,154 lac and PAT Rs 6,156.99 lac, up 164.26% and 156.11%, respectively.

• Cash profit increased 125.31% to Rs 7,935.65 lac; EPS rose 137.69% to Rs 22.39.

Outlook and guidance

• Targeting 1 million MTPA combined coal tar distillation capacity by 2010: 400,000 MTPA in India and 600,000 MTPA in China.

• Indian capacity plan expands to 400,000 MTPA by 2010; commercial advanced carbon production, refined naphthalene and further value-added products are planned.

• Management expected growth in sales and profitability to continue; value-added products were targeted to become the major revenue source by 2010.