UPL (UPL) Q4 99/00 earnings summary

Executive summary

• Subsidiary results were mixed: Search Chem recorded a substantial loss, while Enviro Technology, Bio-Win, Australia, Zambia, Hong Kong, the U.S. and Russia reported profits; Agrodan and the U.K. operation reported losses.

• Search Chem’s performance faced price pressure and low power-plant utilisation; Enviro Technology’s service income rose 5% YoY and its term loan was fully repaid.

Financial highlights

• Search Chem turnover was Rs 13,33,732 thousand and loss before and after tax was Rs 4,90,014 thousand for FY99; prior-year loss was Rs 3,05,539 thousand.

• Enviro Technology revenue was Rs 73.98m, up 3.3% YoY; PAT was Rs 4.18m versus Rs 4.29m, with PBT of Rs 4.73m.

• Bio-Win turnover rose to USD 22.65m from USD 20.37m; profit for the year was USD 3.23m versus USD 0.24m after a USD 2.5m dividend.

• U.S. operations reported net sales of USD 8.67m and net income of USD 86,493, versus USD 9.97m and USD 625,794; gross profit fell to USD 1.84m from USD 2.52m.

• U.K. turnover fell to £23.852m from £29.814m; operating profit was £289k and net loss was £317k, versus £780k operating profit and £79k loss.

Outlook and guidance

• Search Chem expected improved results as chlor-alkali prices recovered, new speciality-chemical plants came on stream and power utilisation improved; export growth was expected in FY00.

• Search Chem expected its elemental-phosphorus plant to begin production in about a month and planned additional chlorine-based and speciality-chemical plants.

• Agrodan expected product registrations in Sweden and Finland during FY00/01 and anticipated returns from registration investments over the next 3–5 years.

• Russia expected sales and profits to grow as it expanded in the local market; Mexico also anticipated continued agricultural-product sales growth.