UPL (UPL) Q4 03/04 earnings summary

Executive summary

• Manufacturing demerger took effect from the appointed date of 1 Mar 2003; FY04 results include the transferred business, making comparisons with the prior period non-comparable.

• Standalone sales were Rs.876.96 crore and PBT Rs.57.99 crore; consolidated revenue was Rs.1,153.03 crore and profit after tax and minority interest Rs.100.55 crore.

Financial highlights

• Standalone net sales after excise were Rs.823.60 crore; exports were Rs.471.66 crore, or 55% of total sales.

• Standalone PBT before extraordinary expense was Rs.64.61 crore; Rs.6.61 crore of extraordinary expense reduced PBT to Rs.57.99 crore.

• Standalone PAT was Rs.53.78 crore; consolidated PBT was Rs.98.15 crore after Rs.14.55 crore of extraordinary expense.

• Standalone operating cash flow was negative Rs.25.70 crore, including Rs.68.22 crore of interest paid; the consolidated cash flow statement was not prepared in this first reporting year.

Outlook and guidance

• Directors expected improved performance, citing a forecast good monsoon and an encouraging agrochemical outlook; near-normal rainfall was expected to support the Indian market.

• Exports were expected to continue growing; further acquisitions were contemplated where opportunities arose, with export growth expected to benefit.

• Restarting the Jhagadia Yellow Phosphorus plant was expected to benefit from reduced Chinese production; natural gas use was expected to lower power-generation costs.