IPCL Q4 net up 239% to Rs 336 crore

BS 200 SCORECARD

Riding on the upswing in petrochemical product prices, Indian Petrochemicals Corporation (IPCL), a Reliance group company, has recorded a 239.39 per cent increase in net profit to Rs 336 crore for the quarter ended March 31, 2005, compared with Rs 99 crore in the same quarter of previous year.

The company's net turnover rose to Rs 2,643 crore (which includes trading sales of Rs 15 crore) compared with Rs 2,620 crore (including trading sales of Rs 1,020 crore) in the quarter ended March 2004.

During the year 2004-05, the company recorded a 188 per cent rise in net profit to Rs 786 crore, up from Rs 273 crore in 2003-04. This is the highest ever net profit since its inception.

The company's previous net profit record was Rs 603 crore in 1995-96.

The IPCL scrip gained 6.12 per cent on the Bombay Stock Exchange to close at Rs 170.80.

Net turnover during the year under review stood at Rs 8,199 crore (including trading sales of Rs 68 crore) compared with Rs 8,098 crore (including trading sales of Rs 2,224 crore) in the previous year.

The company has proposed a dividend of 45 per cent for 2004-05.

"The initiatives introduced to increase capacity utilisation, reduce operating costs, improve financial management and enhance overall productivity and efficiency have resulted in continuous improvement in financial and operating performance of the company year-on-year and 2004-05 has been a year of record performance on all major operating and financial parameters," said the company in its media release.

In the year under review, the company's outstanding debt reduced to Rs 760 crore from Rs 2,166 crore in 2003-04. This resulted in its debt to equity ratio at 0.43 as on March 31, 2005 compared with 1.19 on March 31, 2004.

Its interest burden has also declined by 60.81 per cent to Rs 87 crore during 2004-05 from Rs 222 crore in 2003-04.

Depreciation was higher by 7 per cent at Rs 506 crore compared with Rs 472 crore for the previous year.

"This was mainly due to depreciation on assets capitalised during the year," the release added.

The company has also recorded Rs 20 crore as impairment loss and has incurred a cost of Rs 62 crore as an extraordinary expenditure on VRS by 680 employees.

Besides the company has pointed out that the "increase in global demand of petrochemical products outpaced increase in supplies and polymer prices entered into a new up cycle. Domestic demand of petrochemicals too strengthened resulting in increased operating rates and earnings."

The domestic sales of products jumped 24 per cent to Rs 6,493 crore and accounted for 80 per cent of turnover excluding trading sales, the company said.

The company's exports of manufactured products stood at Rs 1,638 crore during the year under review , an increase of 154 per cent compared with Rs 644 crore in the previous year.