Vinati Organics (524200) Q4 03/04 earnings summary

Executive summary

• FY2003-04 net sales reached Rs.3,918.81 lakh, while net profit fell to Rs.23.02 lakh from Rs.95.49 lakh, pressured by sharply higher principal raw-material prices and lower ATBS realizations.

• No dividend was recommended to conserve funds.

Financial highlights

• Sales and other income were Rs.4,007.99 lakh versus Rs.3,472.26 lakh; net sales were Rs.3,918.81 lakh versus Rs.3,374.31 lakh.

• Profit before tax was Rs.9.23 lakh versus Rs.161.27 lakh; net profit was Rs.23.02 lakh versus Rs.95.49 lakh.

• EPS was Rs.0.35 versus Rs.1.45; deferred tax provision was a credit of Rs.14.64 lakh versus an expense of Rs.54.71 lakh.

• Foreign-exchange earnings were Rs.803.73 lakh versus Rs.599.36 lakh; outgo was Rs.154.18 lakh versus Rs.104.71 lakh.

Outlook and guidance

• Modified ATBS and SMAS plants were expected to return to operation by November 2004, with improved capacity and quality and lower operating costs.

• ATBS and SMAS user approvals supported expectations for supply contracts in FY2004-05; further approvals were expected for new applications.

• Planned R&D focus included process and product improvements, capacity expansion, customer needs, and environmental performance.