Lords Chloro Alkali (500284) Q4 01/02 earnings summary

Executive summary

• Production and sales rebounded as the membrane-cell plant and both captive DG sets operated, but the year ended with a reported net loss of Rs. 3,777.25 lacs.

• The business remained under BIFR rehabilitation review, with power costs, liquidity constraints and substantial disputed or unprovided liabilities weighing on its recovery.

Financial highlights

• Sales rose to Rs. 2,718.64 lacs from Rs. 1,148.71 lacs; reported turnover growth was 137% YoY.

• Total income was Rs. 2,502.92 lacs; operating loss before interest and depreciation was Rs. 339 lacs, versus Rs. 358 lacs in FY 2000-01.

• Net loss widened to Rs. 3,777.25 lacs from Rs. 3,408.56 lacs; interest expense was Rs. 2,801.18 lacs.

• Adjusted for quantifiable auditor observations, the loss would have been Rs. 3,858.62 lacs; effects of other audit qualifications could not be determined.

Outlook and guidance

• Revival proposals submitted to the operating agency were under consideration; operations were running at low capacity using captive DG-set power.

• Revival priorities included installing DG sets, balancing membrane-cell capacity from 60 TPD to 100 TPD, and adding an electrolyser.

• Captive power was considered essential to compete with high grid-power charges and cheaper imports.