Vinati Organics (524200) Q4 99/00 earnings summary

Executive summary

• FY1999-2000 performance improved significantly, supported by cost controls and better product realizations. Net profit rose to Rs 575.23 lakh from Rs 4.92 lakh.

• The business remained centered on Isobutyl Benzene, while development of fine chemicals was planned to diversify the product base.

Financial highlights

• Sales and other income were Rs 3,173.88 lakh versus Rs 3,073.42 lakh; gross turnover was Rs 3,141.18 lakh versus Rs 3,024.27 lakh.

• Profit before depreciation, non-cash charges and taxes increased 68% to Rs 832.57 lakh from Rs 495.02 lakh; PBT was Rs 693.94 lakh versus Rs 6.98 lakh.

• Net profit was Rs 575.23 lakh versus Rs 4.92 lakh; EPS was Rs 8.74.

• Interim dividend of 15% was paid and confirmed as the final dividend; dividend and tax absorbed Rs 109.61 lakh.

Outlook and guidance

• Fine-chemical projects at Lote MIDC were expected to increase sales and profitability margins and reduce dependence on the existing single product.

• CSIR collaborations were underway to develop advanced, eco-friendly and cost-competitive technologies for various products.