NOCIL (NOCIL) Q4 00/01 earnings summary

Executive summary

• FY ended Mar 31, 2001 turnover including excise duty was Rs 989 crore vs Rs 996 crore; net profit rose to Rs 11.62 crore from Rs 0.99 crore. No dividend recommended.

• Cost-reduction measures generated savings of ~Rs 30 crore amid higher crude, naphtha and other input costs.

Financial highlights

• Profit before tax was Rs 13.12 crore vs Rs 1.39 crore; profit after tax was Rs 11.62 crore vs Rs 0.99 crore.

• Sales including excise duty were Rs 988.81 crore vs Rs 995.61 crore; other income was Rs 35.47 crore vs Rs 36.55 crore.

• Interest expense fell to Rs 28.07 crore from Rs 35.41 crore; Rs 30.75 crore of project interest was capitalised during the year.

• Reported expenses included a Rs 74.96 crore write-off for diminution in investment value; Rs 123.79 crore was withdrawn from the contingency reserve toward diminution in investments and advances.

Outlook and guidance

• Petrochemical and polymer demand in Asia was expected to expand over the next decade, with demand for ethylene and propylene derivatives projected to double by 2010.

• Domestic petrochemical conditions were expected to remain difficult for several years, with high costs and low profitability until economic recovery anticipated by end-2002.

• Planned capacity expansion and a shift toward polyolefin products were intended to improve scale, cost competitiveness and environmental performance.