UPL (UPL) Q4 97/98 earnings summary

Executive summary

• FY98 turnover was Rs. 47,411.93 lacs; profit after tax fell to Rs. 2,222.39 lacs amid a sharp global decline in agrochemical prices.

• Exports remained steady at Rs. 17,611.60 lacs; directors expected exports to increase in FY99.

Financial highlights

• Turnover declined from Rs. 51,609.44 lacs to Rs. 47,411.93 lacs YoY; profit before tax fell to Rs. 2,472.39 lacs from Rs. 3,172.85 lacs.

• Profit after tax was Rs. 2,222.39 lacs versus Rs. 2,757.85 lacs; provision for tax was Rs. 250 lacs versus Rs. 415 lacs.

• Net interest expense decreased to Rs. 2,959.67 lacs from Rs. 4,614.76 lacs following a financing exercise with financial institutions.

• Exports were Rs. 17,611.60 lacs versus Rs. 17,827.82 lacs in the prior year.

Outlook and guidance

• Directors expected exports to increase in FY99 and stated that steps were being taken to support continued export growth.

• Search Chem anticipated improved FY99 performance as caustic-chlorine market conditions improved, power wheeling permission was pursued, and export orders for value-added products were secured.