Net sales increased by 9% to Rs 45.26 crore and other operating income rose by 33% to Rs 2.00 crore leading total operating income to grow by 10% to Rs 47.26 crore. Operating profit margins posted healthy expansion of 870 bps to 28.3% as a result operating profit grew by 58% to Rs 13.35 crore. Interest cost declined by 11% to Rs 0.83 crore and depreciation went up by 13% to Rs 0.83 crore resulting PBT to increase by 73% to Rs 11.71 crore. Reversal of forex loss incurred in the first three quarters of Current fiscal revised as forex gain by deferring AS11 to 2011. Dip in the effective tax rate by 1490 bps to 19.6% boosted net profit to grow by 174% to Rs 12.17 crore.

Other highlights

• For the year ended March'09, the net sales rose by 30% to Rs 190.50 crore and net profit up by 65% to Rs 25.13 crore. Isobutylbenzene (IBB) contributed 60% as against of 70% in the corresponding period and remaining 40% contributed by 2-Acrylamido 2 Methyl Propane Sulfonic Acid (ATBS) as against of 30% in the corresponding pervious period.
• For the quarter, IBB contributed 56% as against 44% in corresponding previous quarter and ATBS contribution stood at 44% compared to 30%.
• Company expects the contribution from ATBS will increase to 50% for FY'10.
• Volumes produced in FY'09 stood at IBB: 11000 tonnes and ATBS: 4500 tonnes with capacity utilization of IBB: 78.57% and ATBS: 90%.
• Company has successfully completed backward integrating into manufacture of Isobutylene (IB) which is a key raw material for ATBS. Currently IB is imported from Europe & Taiwan in pressurized tanks. Current capacity 10000TPA as against 5000 TPA.
• Capex spend for FY'09 around Rs 40 crore for backward integration project of IB.
• Rise in the other expenditure was due to increase in fright charges.
• Debt on the books as on 31^st March 09 is around Rs 36 crore of which Rs 12 crore repay scheduled in the FY'10.
• Average interest cost of the company at 11%.
• Global demand for IBB: 17000 tonnes and ATBS: 25000-30000 tonnes.
• Other operating income of Rs 2.00 crore on the account of DEBT benefits on exports.
• As on 31^st March'09, Cash & Cash equivalents: Rs 1.80 crore and Gross block: Rs 110 crore.
• Higher margins during the quarter are mainly due to higher margins in ATBS business.
• Expects margins in IBB will increase to 15% currently it is 13%.
• Company has signed long term contract for supplying ATBS 5000 tonnes for 3 years.
• Working capital as on 31^st March'09 is Rs 9 crore
• As ATBS unit is in income tax free zone tax rate for FY'10 would around 15%.
• Capex for FY'10 would around Rs 45 crore. This was funded by raising debt of Rs 35 crore.