Vinati Organics (524200) Q4 98/99 earnings summary

Executive summary

• FY1998-99 sales and other income rose to Rs 3,073.42 lacs from Rs 2,148.10 lacs; pre-depreciation profit before tax increased to Rs 495.02 lacs from Rs 189.90 lacs.

• Reported net profit fell to Rs 4.92 lacs from Rs 57.43 lacs, primarily reflecting higher depreciation after a change in method.

Financial highlights

• Sales were Rs 302.43 million versus Rs 211.09 million; total income in the profit and loss account was Rs 281.27 million versus Rs 233.64 million, including a finished-stock decrease of Rs 26.08 million.

• Profit before depreciation, non-cash charges and taxes rose to Rs 495.02 lacs from Rs 189.90 lacs; profit before tax was Rs 6.98 lacs versus Rs 62.53 lacs.

• Net profit after tax was Rs 4.92 lacs versus Rs 57.43 lacs; EPS was Rs 0.07 and no dividend was recommended.

Outlook and guidance

• Encouraging pilot-plant results for Benzaldehyde and Benzoic Acid supported plans to consider installation at commercial scale.

• A Y2K contingency plan addressing potential disruption from external agencies was expected to be in place by 31 October 1999.