Vinati Organics (524200) Q4 97/98 earnings summary

Executive summary

• FY98 net profit rose to Rs. 57.43 lacs from Rs. 1.55 lacs, while sales value eased to Rs. 2,110.89 lacs from Rs. 2,129.71 lacs.

• Isobutyl Benzene production increased 28% to 3,058 tonnes; sales volume rose to 2,758.5 tonnes, including 224.25 tonnes exported.

Financial highlights

• Profit before interest, depreciation, non-cash charges and taxes was Rs. 447.88 lacs vs. Rs. 458.14 lacs; PBT was Rs. 62.53 lacs vs. Rs. 1.79 lacs.

• Net profit increased to Rs. 57.43 lacs from Rs. 1.55 lacs, primarily due to higher depreciation provided in FY97; FY98 tax provision was Rs. 5.10 lacs.

• Revenue totalled Rs. 2,316.39 lacs vs. Rs. 2,300.99 lacs, including sales, export benefits/import entitlements, other income and stock increase.

• Other income included Rs. 28.73 lacs profit on sale of fixed assets; adjusted for this non-recurring gain, no alternative profit figure is stated.

Outlook and guidance

• Q1 FY99 sales were 628.66 tonnes domestically, valued at Rs. 493.19 lacs, and 133.30 tonnes for export, valued at Rs. 95.33 lacs.

• Directors cited the need to conserve funds and recommended no dividend for FY98.