NOCIL (NOCIL) Q4 04/05 earnings summary

Executive summary

• The 18-month period ended 31 Mar 2005 covered a restructuring that transferred the Petrochemicals and Plastic Products divisions; operations are now focused on Rubber Chemicals.

• Positive net worth at period-end followed the demerger; plans were to seek removal from BIFR after adoption of the accounts.

Financial highlights

• Turnover was Rs 459 crore vs Rs 452 crore in the previous 18-month period; current-period results include activity affected by the demerger.

• Operating profit before depreciation, interest, tax and exceptional items was Rs 35.23 crore; PBT was Rs 174.72 crore, including a Rs 152.39 crore demerger surplus.

• PAT was Rs 183.37 crore, including the demerger surplus; adjusted for that item, EPS was Rs 2.53 vs a loss of Rs 29.77 in the previous period.

• Exports were Rs 138 crore, up 35% vs the previous period.

Outlook and guidance

• Management expected Rubber Chemicals sales volumes and profitability to grow, supported by customer relationships, new products and global capacity restructuring.

• Demand for rubber chemicals was expected to rise; Asia-Pacific was the key opportunity, with sales networks being developed in Europe and other markets.

• Financing applications were submitted to banks for expansion projects in Rubber Chemicals; rising input costs remained a concern.