Vinati Organics (524200) Q4 07/08 earnings summary

Executive summary

• FY08 net sales rose 78.37% to Rs.16,135.58 lakh; PBT reached Rs.2,314.61 lakh and PAT Rs.1,519.77 lakh, supported by export growth, IBB sales and ATBS demand.

• Capacity expansion advanced across IBB and ATBS; FY09 growth outlook was described as strong, with ATBS expansion benefits expected after commissioning and production ramp-up.

Financial highlights

• Net sales Rs.16,135.58 lakh versus Rs.9,046.22 lakh in FY07; other income Rs.403.42 lakh and total income Rs.15,035.96 lakh.

• Profit before interest, depreciation and taxes Rs.2,935.90 lakh versus Rs.1,022.39 lakh; PBT Rs.2,314.61 lakh versus Rs.552.68 lakh.

• PAT Rs.1,519.77 lakh versus Rs.351.39 lakh; current tax provision Rs.748.60 lakh, deferred tax Rs.42.50 lakh and fringe benefit tax Rs.8 lakh.

• Export benefits/import entitlements contributed Rs.364.27 lakh to other income; export goods earnings on FOB basis were Rs.9,307.52 lakh.

Outlook and guidance

• FY09 outlook called for strong growth across existing and new business areas, supported by chemical-industry demand and growing exports.

• ATBS capacity expansion from 3,000 to 8,000 TPA was scheduled for completion by 30 September 2008; earnings impact expected in the final quarter after successful trials and full-rate production.

• IBB capacity increased 40% to 14,000 TPA to meet higher export demand; expanded-unit benefits were expected to begin in FY09.