UPL (UPL) Q4 96/97 earnings summary

Executive summary

• FY ended Mar. 31, 1997: product sales rose 23% YoY to Rs 516.09 crore, while PAT fell 43% to Rs 27.58 crore amid high interest costs and difficult market conditions.

• Exports grew 29% to Rs 178.28 crore; the board recommended an equity dividend of Rs 3/share, equal to a 30% dividend rate.

Financial highlights

• PBT was Rs 31.73 crore vs Rs 50.80 crore; PAT was Rs 27.58 crore vs Rs 48.30 crore. Net interest expense rose to Rs 46.15 crore from Rs 12.56 crore.

• Total income was Rs 548.44 crore vs Rs 457.70 crore; manufacturing and other expenses reached Rs 417.45 crore vs Rs 353.36 crore.

• Operating cash flow was negative Rs 17.71 crore; investing activities generated Rs 49.75 crore, and financing activities used Rs 29.30 crore. Closing cash was Rs 31.03 crore.

Outlook and guidance

• Normal monsoons and falling interest rates were expected to support improved operations; chemical and agrochemical market oversupply and new entrants remained challenges.

• Plans included developing 2–3 new products to support turnover and profitability; directors expected the business to perform reasonably well in the current year.

• Search Chem expected improved FY98 performance as projects were completed, following delayed implementation and capacity underutilisation in FY97.