Financials - FY '03 - 15 May 2003

Kanoria Chemicals and Industries Limited
Press Release
15 May 2003

Even in a year marked with difficult market conditions, Kanoria Chemicals and Industries Limited (KCIL) was able to significantly improve its profitability. Announcing its annual financial results, the company highlighted an improvement in its net profits from Rs. 7.1 crores in 2001-02 to Rs. 12.7 crores in 2002-03, registering a growth of 78.9 per cent. The operating profits increased by 17.8 per cent during the same period, from Rs. 46 crores to Rs. 54 crores.

The improved profitability has been attributed primarily to higher turnover and improved efficiencies. Another factor was the significant reduction in the interest charges on borrowed capital arising out of restructuring the company's debt portfolio during the year. The company feels that the impact of this financial restructuring would be more evident next year. Operating profit margins improved from 14.5 per cent in 2001-02 to 15.6 per cent in 2002-03. During the same period interest charges reduced from Rs. 19.8 crores to Rs. 16.7 crores, thus reflecting a saving of about Rs. 3 crores on interest charges alone.

Expressing his satisfaction with the financial results of the company, Shri R V Kanoria, Chairman and Managing Director, said that KCIL's sustained focus on technological innovations in its manufacturing processes and its corporate ethos of commitment and consolidation are key factors responsible for the improved performance of the company.

Kanoria Chemicals and Industries Limited is a major player in the Indian chemicals industry, manufacturing chlor-alkalis and alcohol-based intermediates. The company started in the early 1960s, has evolved as a market leader in India in several of the products it manufactures. KCIL operates its own thermal power plant and enjoys a cost advantage as a result of backward and forward integration.