NOCIL (NOCIL) Q4 98/99 earnings summary

Executive summary

• FY99 turnover was ₹1,026.19 crore vs ₹1,100.18 crore; net profit fell to ₹11.14 crore from ₹37.63 crore amid recession and sharp petrochemical price pressure.

• No dividend was recommended; ₹100 crore was transferred to the Reserve for Contingency.

Financial highlights

• Sales including excise duty were ₹1,026.19 crore vs ₹1,100.18 crore; other income was ₹66.84 crore vs ₹69.23 crore.

• Profit before depreciation was ₹32.65 crore vs ₹60.10 crore; depreciation was ₹19.01 crore vs ₹17.87 crore; PBT was ₹13.64 crore vs ₹42.23 crore.

• Net profit was ₹11.14 crore vs ₹37.63 crore; tax provision was ₹2.50 crore vs ₹4.60 crore.

• Excluding the ₹12.59 crore favorable effect from revised inventory costing, FY99 profit would have been lower by that amount.

Outlook and guidance

• Exports, led by rubber chemicals, were expected to grow significantly; new international markets were being developed.

• Modernization and substantial expansion at Thane were being advanced through a proposed jointly owned polyethylene venture; regulatory approvals were being pursued.

• Management expected petrochemical restructuring and fixed-cost reductions to improve competitiveness against imports and domestic competition.