Financials - Q2FY07 - 31 October 2006

Kanoria Chemicals declares operating profit of Rs. 204 million in Q2 Expanded Caustic Soda manufacturing capacity further opens up the company's growth potential.
New Delhi, October 31, 2006 – Kanoria Chemicals & Industries Limited (KCI), India's leading manufacturer of chemical intermediates, today announced its second quarter results of fiscal 2006­07.
Highlights of the Results

  • Operating profit increased by 14.7% in Q2 2006-07 from corresponding quarter in the previous year to Rs. 204.44 million
  • Net Sales increased by 45.7% in the same period to Rs. 1,097 million.
During the quarter, KCI's operating profit was up by 14.7% at Rs. 204.44 million as against Rs. 178.22 million last year. After the modest beginning for the current fiscal KCI has been successful in raising its businesses to the next level. The second quarter results reemphasises the position of KCI, not only as thought leader but also as organization with vision to excel and expand. With the stabilisation of the increased capacity for manufacturing Caustic Soda, currently at 90,000 TPA, the growth momentum in the company's businesses has significantly strengthened. The capacity will further go up to 130,000 TPA next year.

R. V. Kanoria , Chairman & Managing Director of KCI, commenting on the results said "We believe that our focus on a sustainable growth strategy has continued to deliver robust results for the company. Our business witnessed strong volume growth and operational improvements during the last quarter. We have carried out internal restructuring including a more effective manpower deployment. We intend to keep forging ahead and ensure that benefits to the stakeholders of KCI are maximised."

During the quarter the focus of KCI was on consolidation and stabilisation of the expanded Caustic Soda capacity. The quarter also saw KCI being awarded the Certificate of Suitability by the European Directorate for Quality of Medicines for the process being followed to manufacture Lindane at its Renukoot plant. This certification takes cognizance of both the end product composition and process for manufacturing of Lindane and certifies it as being compliant with EDQM prescribed norms for use in life saving drugs.