Financials Q1 2006 - 27 July 2006

Kanoria Chemicals declares operating profit of Rs. 159.61 million in Q1Q1 net sales grows by 25.2% YoY
Highlights:
  • First quarter operating profit at Rs. 159.61 million, down 12.6% from the corresponding quarter last fiscal
  • Net sales increased by 25.2% to Rs. 931.43 million from Rs. 744.24 million.
New Delhi, 27 July 2006: Kanoria Chemicals & Industries Limited (KCI), India's leading manufacturer of chemical intermediates, today announced its Q1 results. During the first quarter of current fiscal KCI's operating profit was down by 12.6% at Rs. 159.61 million as against Rs. 182.54 million last year. The modest Q1 results can be attributed to the process of stabilisation of the expanded Caustic Soda capacity including re-testing of equipment related to expansion. The Chlor Alkali realisations also witnessed significant decline compared to the same quarter last year.

According to Mr. R V Kanoria, Chairman & Managing Director, KCI, "This is an exciting phase for the company and the industry. I am confident that the strengths we have developed over the past four decades, in terms of human relations, process expertise, innovative use of best in class technologies, efficient operations and good understanding of the market would help KCI in sustaining its growth trajectory.

He added, "We have completed the first phase of expansion and are pleased that the initial stabilisation process is complete. We are now looking towards the execution of the second phase. "

The successful commissioning of KCI's plant in Renukoot has aided in increased production of Caustic Soda and also in doubling the power generation capacity to 50 MW.

Outlook for the quarter ending 30 September 2006

The expanded capacity for manufacture of Caustic Soda has stabilised. As a result the company is expected to achieve higher capacity utilisation that would substantially improve profitability.

The demand for Caustic Soda has strengthened on the back of strong growth of user industries like Aluminium and Paper.
About Kanoria Chemicals
Kanoria Chemicals & Industries (KCI) is a leading manufacturer of Chlor-alkali and Alco-chemical based intermediates with a portfolio comprising of over 15 products. Emerging as a market leader in three and with substantial market share in all other products, KCI is ISO 9001, ISO 14001 and OHSAS 18001 certified company besides being rated a 'CRISIL GVC Level 3' for its strong capability with respect to wealth creation for all its stakeholders while adopting sound corporate governance practices