Financials Q4FY08 Annual FY08 29 April 2008

Kanoria Chemicals announces 56% higher Net Profit for FY08

Sales revenue for FY08 stood at Rs 432 crore
EBIDTA for FY08 up 15% v/s FY07 at Rs 97 crore
Editor's Synopsis
Financial Highlights (FY08)
  • Sales revenue at Rs 432 crore
  • Net Profit at Rs 31 crore up 56%
  • EBIDTA at Rs 97 crore, up 15%
  • Operating margins up at 22.4% compared to 19.6% in FY07
Other Highlights
  • KCI commissions expanded Caustic Soda Capacity
New Delhi, April 29, 2008: Kanoria Chemicals & Industries Limited (KCI), India's leading manufacturer of chemical intermediates, registered good performance for the financial year ended March 31, 2008. KCI reported Sales Revenue of Rs 432 crore. The Net Profit for FY08 was Rs 31 crore, up by 56% from last year.

EBIDTA for the fiscal stood at Rs 97 crore as against Rs 84 crore in the previous fiscal, registering a growth of 15%. For FY08, the EBITDA margin stood at 22.4% as against 19.6% in the previous year. The Basic EPS was recorded at Rs 5.47.

The board of directors has recommended a dividend of 30% for FY08 on the post Bonus enlarged equity capital.

Commenting on the strong numbers posted for this fiscal, Mr. R.V. Kanoria, CMD, Kanoria Chemicals & Industries Limited said, "We are pleased to report an operationally good financial year. Even though we faced difficult market conditions during the year, our operating margins have improved indicating efficient operations. We were also able to maintain our interest costs despite rising rates in the last quarter of FY08. The net profit for the year increased by 56% in spite of higher incidence of deferred tax and depreciation."

Operational Highlights

Capacity Expansion:
Kanoria Chemicals & Industries Limited (KCI), during the financial year announced commissioning of its second 110 TPD capacity Caustic Soda plant using the environment-friendly membrane cell technology. The company's total manufacturing capacity of Caustic Soda now stands at 130,000 TPA. The expansion of the membrane cell plant was the primary area of KCI's expansion plan with an initial planned outlay of Rs150 crore. This expansion will also result in the increase in capacities of co-products -Liquid Chlorine and Hydrochloric Acid.

KCI is also setting up a Greenfield project at Vizag for manufacturing Pentaerythritol and other alcohol based intermediates. Land for the project has already been acquired and construction work is expected to begin during the first quarter of FY09.