Financials - Q2 FY '04 - 31 October 2003

Kanoria Chemicals & Industries Limited (KCI) announces improved performance for Q2 FY '04 Net Profit up by 61.9% to Rs. 6.3 crores; Turnover up by 4.9% to Rs. 94 crores
Kanoria Chemicals & Industries Limited (KCI), one of the leading Indian manufacturers of chemical intermediates, today announced its operational and financial results backed by improved efficiencies in operations, focus on cost cutting and an upturn in the economy for the second quarter (July-September 2003) of the current financial year.
Financial Performance
Highlights of Q2, FY '04 (July '03 to Sept '03) v/s Q2, FY '03 (July '02 to Sept '02)
  • Total revenues increased by 4.9% to Rs. 93.99 crores from Rs. 89.61 crores
  • Net Profit increased by 61.9% to Rs. 6.25 crores from Rs. 3.86 crores
  • EPS on basic and diluted earnings is Rs. 3.53 against Rs. 2.11
Highlights of H1, FY '04 (April '03 to Sept '03) v/s H1, FY '03 (April '02 to Sept '02)
  • Total revenues increased by 5.6% to Rs. 177.0 crores from Rs. 167.7 crores
  • Net Profit increased by 22.6% to Rs. 8.58 crores from Rs. 7.00 crores
  • EPS on basic and diluted earnings is Rs. 4.69 against Rs. 3.78
Sequential Quarter Highlights of Q2, FY '04 (July '03 to Sept '03) v/s Q1, FY '04 (April '03 to June '03)
  • Total revenues increased by 13.2% to Rs. 93.99 crores from Rs. 83.01 crores
  • Net Profit increased by 168.2% to Rs. 6.25 crores from Rs. 2.33 crores
  • EPS on basic and diluted earnings is Rs. 3.53 against Rs. 1.16
Operational Highlights
  • The company secured ISO 14000 accreditation for its Ankleshwar unit in the current quarter, making all its manufacturing units both ISO 14000 and ISO 9000 accredited
  • Reverse Osmosis Plant has been commissioned at Ankleshwar unit. Established for the first time in India, the process is expected to radically change the distilling industry in India through focus on sustainable development and concern for environment
  • The company acquired a Poly-Aluminium Chloride plant and is the process of re-locating it to Renukoot (to be completed by June 2005). This will enable the company to consolidate its position in the water treatment chemicals business and synergise cost and market efficiencies
Commenting on the company's performance for FY 2003, Mr. R.V. Kanoria, Chairman & Managing Director, Kanoria Chemicals & Industries, said:
"Our strategy to focus on technological innovations in our manufacturing processes, focus on reducing costs and market share consolidation in our product category is beginning to reflect on our performance. The company has been able to significantly improve its profitability backed by improved operational efficiencies and higher off-take of our products by our consumers based on a positive upswing in the economy's performance.

We are continuing to focus on improving plant level efficiencies and reduce the cost of our borrowings. This strategy will reflect in the overall performance in the current year."

Growth Strategy and Outlook for FY 2004

Kanoria Chemicals and Industries (KCI) aims to emerge as a leading manufacturer of chemical intermediates in India. KCI has been aggressively investing in technological innovations to improve plant level efficiencies. The company has emerged as a low cost manufacturer of Chlor-Alkalies and Alcohol based intermediates backed by conscious backward and forward integration of the production line. The company's focus is on market share consolidation with additions in product lines both by way of organic and inorganic growth. The company is focusing on its ability to meet increased demand based on a positive outlook for the Indian economy.
  • Capacity enhancement of the Formaldehyde production facility to 75,000 MT per annum from 50,000 MT per annum in the Ankleshwar unit will be commissioned by the end of next quarter.
  • A duel fuel engine for natural and biogas will be installed by the mid of Q3 resulting in a return through cost savings of around Rs. 1.5 crores per year.
  • A new unit with 3285 MT per annum capacity will be added to the existing 6875 MT installed capacity for Aluminium Chloride at the Renukoot unit by December 2003, taking the total installed capacity to 10,160 MT per annum.
The company hopes to maintain this top line and bottom line growth for the current year.