Financials - Q3FY2004-05 - 29 Jan 2005

Kanoria Chemicals & Industries Limited (KCI) announces improved profitability for Q3 FY '05
Turnover up by 16% at Rs. 105.6 crores; Operating Profit up by 8% to Rs. 16.2 crores
Kanoria Chemicals & Industries Limited (KCI) announced its financial results today. It reported improved efficiencies in operations and continued focus on cost cutting for the third quarter (October - December 2004) of the current financial year.

Financial Performance Highlights of Q3, FY '05 (Oct '04 to Dec '04) v/s Q3, FY '04 (Oct '03 to Dec '03)
  • Total revenues increased by 16.0% to Rs. 105.60 crores from Rs.91.05 crores
  • Operating Profit up by 8.1% to Rs. 16.21 crores from Rs. 14.99 crores
  • Net Profit increased by 5.3% to Rs. 6.35 crores from Rs. 6.03 crores
  • EPS on basic and diluted earnings is Rs. 3.72 against Rs. 3.44
The profits for the current quarter were higher despite higher non-cash expenses such as increased depreciation on the ongoing capex plans and deferred tax liability.

Expressing satisfaction on the company's performance for Q3, FY 2005, Mr. R.V. Kanoria, Chairman & Managing Director, Kanoria Chemicals & Industries, said:

"KCI's performance has improved in the current quarter mainly on the back of improved realisations in chlor alkalies and the Chloro Chemicals segment, and despite realisations from the Alco Chemicals segment being impacted on account of increase in prices of the key raw material (molasses).
The phase of consolidation in the company has improved efficiencies and the company has witnessed improvement in demand from user industries across all our products. This will result in a commensurate improvement in our profitability during the current financial year. Work on the expansion plans is also progressing as per schedule and the new Chlor Alkali and 25MW power plants are likely to be commissioned by the end of the year."

Recent Corporate Development

KCI has recently been award the prestigious ICMA Award for Water Resource Management in Chemical Industry for the year 2003-04 and was the only company to be recognised through a Certificate of Merit for ICMA D.M. Trivedi Award for Introducing Advancement in Technology having a Widespread Impact on Chemical Industry for the year 2003-04.

Both the awards pertain to the pioneering use of Reverse Osmosis technology for treatment of distillery effluent and recycling water in India and the recipient was the company's integrated Alco-chemical manufacturing facility in Ankleshwar, Gujarat.