Financials - Q4, FY '04 and for FY 2003-04 - 14 May 2004

Kanoria Chemicals & Industries Limited (KCI) announces improved performance for Q4, FY '04 and for FY 2003-04 - Q4, FY '04 Net Profit up by 207% to Rs.5.2 crores; Turnover up by 9.1.% to Rs. 92.2. crores.
Completes Phase-I of Rs. 210 crores expansion plan; declares 25% dividend

Kanoria Chemicals & Industries Limited, one of the leading Indian manufacturers of chemical intermediates, today announced its financial results for the fourth quarter FY '04 and the full year ended March 31, 2004. Net profit for Q4 has risen by 207 % to Rs. 5.2 crores from Rs. 1.7 crores in the previous year on the back of an increase in 9.1% in turnover to Rs. 92.2 crores from Rs.84.5 crores in the previous year.

The full year Net profit increased by 55.7% to Rs 19.8 crores from Rs. 12.7 crores in the previous year. Turnover for the full year has increased by 7% to Rs. 360.3 crores from Rs.336.8 crores in the previous year.

The Board of Directors has recommended a dividend of 25% on equity shares and 13.5% on Cumulative Redeemable Preference Shares for the year 2003-04, subject to approval by the shareholders.

The company also announced completion of Phase-I of the Rs. 210 crores expansion plan by way of addition in capacity in its Formaldehyde and Aluminium Chloride units, acquisition and re-location of Poly Aluminium Chloride manufacturing facility, installation of dual fuel engine and a first of its kind Reverse Osmosis plant at a cost of around Rs. 30 crores, financed by internal accruals and debts.

The company has initiated Phase-II of the expansion plan to enhance the Caustic Soda manufacturing capacity through the environment friendly Membrane Cell technology, and to add another 25 MW captive thermal power plant embarked at a combined cost of Rs. 180 crores.
Commenting on the company's performance for the year 2003-04, Mr. R.V. Kanoria, Chairman & Managing Director, Kanoria Chemicals & Industries, said:

"The company has posted excellent results this year backed by our strategy of continuously investing in enhancing operational efficiency, cost-reduction, increasing production capacity of some product lines based on market demand and completion of financial restructuring.

An upturn in the economy in the current year has fuelled rise in demand from our user industries. We have added capacity in some of our existing product lines in anticipation of this demand.

With these expansion projects, we hope to further consolidate our market share."

Financial Performance

Highlights of Q4, FY '04 (Jan '04 to Mar '04) v/s Q4, FY '03 (Jan '03 to Mar '03)
  • Total revenues increased by 9.1% to Rs. 92.2 crores from Rs. 84.5 crores
  • Net Profit increased by 207% to Rs. 5.2 crores from Rs. 1.7 crores
  • EPS on basic and diluted earnings is Rs. 2.94 against Rs. 0.71
Highlights of FY 2003-04 (April '03 to March '04) v/s FY 2002-03 (April '02 to March '03)
  • Total revenues increased by 7% to Rs. 360.3 crores from Rs. 336.8 crores
  • Net Profit increased by 55.7% to Rs. 19.8 crores from Rs. 12.7 crores
  • EPS on basic and diluted earnings is Rs. 11.07 against Rs. 6.69
Operational Performance
  • Capacity enhancement of the Formaldehyde production facility to 75,000 MT per annum from 50,000 MT per annum in the Ankleshwar unit.
  • Addition of new capacity of 3285 MT per annum to the existing 6875 MT installed capacity for Aluminium Chloride at the Renukoot unit.
  • Installation of a dual fuel engine for natural and biogas in the Ankleshwar unit resulting in a cost savings of around Rs. 1.5 crores per year from FY '05.
Growth Strategy for FY 2004-05
KCI has been aggressively investing in technological innovations to improve plant level efficiencies and enhancing production facilities to cater to the increased demand from its user industry.
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.
About Kanoria Chemical & Industries Limited
Kanoria Chemicals & Industries Limited is a leading manufacturer of chemical intermediates catering to industries such as Agro chemicals, Aluminium, Paints, Paper, Pharmaceuticals, PVC and Water treatment. KCI has two plants at Renukoot in Uttar Pradesh, which manufactures Chlor-Alkalies, and at Ankleshwar in Gujarat, which manufactures Alcohol based intermediates. The company's portfolio comprises of over 15 products, with a market leadership in three and substantial shares in all others. KCI also operates a 25 MW thermal power plant in Renukoot, and enjoys cost advantage as a result of backward and forward integration.

For further information, please contact:
Pranav Singh / Randhir Verma
Unison Communications
Tel: 5529 2999 / 98114 06106 / 3114 0831
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