NOCIL (NOCIL) Q4 97/98 earnings summary

Executive summary

• FY98 turnover declined to Rs 1,100 crore from Rs 1,174 crore; net profit fell to Rs 37.63 crore from Rs 59.81 crore, reflecting lower production availability and depressed selling prices.

• Production in the Petrochemicals and Polymer Divisions was generally high outside the April 1997 shutdown, with annual records for several products.

Financial highlights

• Sales including excise duty were Rs 1,100.18 crore vs Rs 1,174.33 crore; total income was Rs 1,182.58 crore vs Rs 1,208.75 crore.

• PBT was Rs 42.23 crore vs Rs 78.41 crore; tax provision was Rs 4.60 crore vs Rs 18.60 crore; PAT was Rs 37.63 crore vs Rs 59.81 crore.

• Interest expense was Rs 73.16 crore vs Rs 74.88 crore; depreciation was Rs 17.87 crore vs Rs 15.78 crore.

• Recommended final dividend: 10% for FY98; interim dividend was also recorded in the year’s accounts.

Outlook and guidance

• Negotiations for foreign financial and technical participation in the Thane modernization and expansion project were in final stages; terms awaited a signed MoU.

• Rubber Chemicals Division targeted a substantial export increase over the next three years, following customer consolidation, new-market entry and capacity additions.

• ISO 14000 certification preparations were underway for 1998-99.