Highlights-

• Ample availability of natural gas and improving operational efficiency enabled the company to post impressive performance during the previous quarter ended June 2010.
• The company managed to achieve highest production and sales of its manufactured products during the quarter under review.
• The income from operations of the company during this period rose 45% to Rs 350.54 crores as compared to the corresponding quarter of the previous year.
• The EBIDTA margins rose to 26% in Q1 FY11 as against 24% for the corresponding period in the previous financial year.
• The profit before tax rose 35% to Rs 73.50 crores, while the net profit after tax rose 34% to Rs 52.20 crores during the quarter under review on a year on year basis.
• The chemicals business revenue grew 32% to Rs 231.17 crores. The volumes in the manufactured chemicals business rose 16% over Q1 FY10.
• The revenues for the agri-business more than doubled to Rs 128.80 crores in Q1 FY 11. The own manufactured volumes sales of nitro-phosphate fertilizers rose to 34,080 metric tonnes as against 11,886 metric tonnes in Q1 FY10.
• Bentonite Sulphur also showed growth with volumes sales rising to 4,825 metric tonnes as against 2702 metric tonnes in the corresponding quarter of the previous financial year.
• The methanol sales during the fiscal ended June 2010 rose 8% to 13342 metric tonnes as compared to the corresponding quarter of the previous fiscal, while IPA and CAN sales rose 14% and 25% to 14397 metric tonnes and 19698 metric tonnes respectively.
• Ammonia production increased 50% to 29163 metric tonnes during Q1 FY 2011 as compared to 19386 metric tonnes in Q1 FY 2010.
• The Methanol production rose to 16856 metric tonnes during the quarter under review as compared to 14439 metric tonnes during the corresponding quarter of the previous year. IPA production rose to 15099 metric tonnes as compared to 12704 metric tonnes.
• In the process of manufacturing various chemical products, the company also manufactured various by-products like liquid CO2, Propane etc.
• The DNA sales rose 250% to 7773 metric tonnes during Q1 FY 2011, while the TAN sales were lower. The TAN production was lower as the company diverted the ammonia for production of fertilizers.
• The production of CNA and DNA increased 25% and 46% to 22208 metric tonnes and 77153 metric tonnes respectively during Q1 FY 2011.
• The value sale of IPA was Rs 86 crore during the quarter under review as compared to Rs 55 crore during the same period of the previous year. The combine value of TAN and TAN solution sales were lower at Rs 58.55 crore as compared to Rs 60 crore during the 1^st quarter of FY 2010.
• The chemicals business contributed 61% of the top-line of the company during the quarter under review. This contribution is slated to increase after the commissioning of the new TAN plant.
• The new technical ammonium nitrate (TAN) project of the company in Taloja with a capacity of 3 lakh metric tonnes is ready for mechanical completion and is expected to be commissioned by end of September 2010 or the beginning of October 2011.
• Thus after commissioning of this plant the company will become the 5^th largest manufacturer of this product in the world with the total capacity of 7.32 lakh metric tonnes.
• The ammonia required for this plant will be sourced from leading suppliers in the Middle East and the company has already signed firm ammonia contracts for the same.
• This plant will help the company derive both economies of scale and create entry barriers for new entrants into the Indian market for the product.
• Around 50000-60000 metric tonnes of TAN production is expected from this new plant during the current fiscal.
• The company will start exporting 50000-60000 metric tonnes of TAN from the new TAN plant from January 2011.
• The average price of natural gas for the company during the quarter under review was US$ 4.4 per mbtu as compared to US$ 4.1 per mbtu during the corresponding quarter of the previous fiscal.
• The current price of phosphoric acid price is US$ 775 per metric tonnes and this is expected to remain stable going ahead.
• The company raised an NCD of Rs 50 crore at a rate of 9.31% for 5 years for general corporate purpose during the previous quarter.
• The new High Street Ishanya strategy to optimise returns from the mall / realty business of the company continues to show promise, evincing strong tenant interest.
• The current occupancy level in Ishanya is around 40%. Income from Ishanya was under pressure during the quarter ended June 2010 due to the ongoing modification that is being carried out. The company will spend Rs 55 crore on the said modification.
• The total debt in the company's book as on June 2010 is around Rs 719 crore, while the cash in the company book as on this date is Rs 214 crore.
• Around Rs 68 crore worth of MOP is lying in the stock as on June 2010 and this stock is expected to be cleared during the current quarter.
• The company fetch around 2% margin on the traded fertilizers while the manufactured fertilizers and the specialty fertilizers fetch a margin of 12% and 10% respectively.