Vinati Organics (524200) Q4 00/01 earnings summary

Executive summary

• FY01 sales and other income rose to Rs 3,302.76 lacs from Rs 3,173.88 lacs; net profit fell to Rs 452.71 lacs from Rs 575.23 lacs, citing higher international raw-material prices.

• Diversification into SMAS and AMPSA was underway at Lote MIDC, with commissioning targeted by March 2002 to reduce reliance on Isobutyl Benzene.

Financial highlights

• Sales including excise reached Rs 3,283.90 lacs, up from Rs 3,141.18 lacs; sales and other income totaled Rs 3,302.76 lacs.

• Profit before interest, depreciation and taxes was Rs 822.60 lacs versus Rs 970.38 lacs; PBT was Rs 624.10 lacs versus Rs 693.94 lacs.

• Net profit was Rs 452.71 lacs versus Rs 575.23 lacs; reported results include a Rs 459.57 lacs write-back of depreciation relating to earlier years.

• Interest and other financial expenses declined to Rs 69.73 lacs from Rs 137.81 lacs.

Outlook and guidance

• New plant for SMAS and AMPSA was under construction at Lote MIDC, with commissioning scheduled by March 2002; management expected diversification to lift turnover and profitability.

• A 22-acre Lote MIDC site near Chiplun was acquired for Rs 150.50 lacs; civil construction had started.