Highlights of Conference Call:
- The Sales during the year ended March 2009 increased by 37% to Rs 4802 crore as compared to the previous year.
- The Profit before tax during the year increased by 19% to Rs 522 crore and the net profit increased by 25% to Rs 495 crore during the year under review.
- The domestic market revenue during the year ended March 2009 increased by 29% to Rs 1060 crore whereas the international market sales increased by 33% to Rs 3941 crore.
- North American market contributed 22% of the total consolidated business of the company during the year ended March 2009, whereas the Indian and the European market contributed 21% and 32% respectively. The rest of the world market contributed the remaining share.
- Of the total international sales, the sales from North American region during the year under review was Rs 1081 crore, which was 17% higher as compared to the previous year.
- The sales from Europe was Rs 1587 crore (38% higher compared to the year 2008) and the sales from the rest of the world was Rs 1273 crore during the year ended March 2009, which was 43% higher compared to the previous year.
- The domestic sales were Rs 1033 crore during the year under review increasing by 29% as compared to the previous fiscal.
- North American market contributed 22% of the total consolidated business of the company during the quarter ended March 2009, whereas the Indian and the European market contributed 14% and 42% respectively. The rest of the world market contributed the remaining share.
- Of the total international sales, the sales from North American region during the quarter under review was Rs 304 crore, which was 5% higher as compared to the previous year.
- The sales from Europe was Rs 585 crore (21% higher compared to the corresponding quarter of the previous fiscal) and the sales from the rest of the world was Rs 315 crore during the quarter ended March 2009, which was 20% higher compared to the previous year.
- The domestic sales during the 4th quarter was Rs 196 crore thus increasing by 5% as compared to the corresponding quarter of the previous fiscal.
- The outstanding borrowing as at the end of fiscal 2009 was Rs 2073 crore, thus increasing by 806 crore as compared to the previous fiscal.
- The effective increase in borrowing was due to loan to Advanta to the tune of Rs 184 crore, reprising of forex loans to the tune of Rs 261 crore and the balance for the working and the capital expenditure requirement.
- The company expects volume growth of 10-15% in the current fiscal as pricing is seen correcting. Pricing is expected to correct in the fiscal as raw material prices fall besides competitive pressure on certain molecules and products.
- The demand across U.S. and Europe is expected to be strong. In Asian market also the demand is expected to be buoyant however Latin American market is expected to be weak.
- The company has been able to rein in working capital (from 119 days to 91 days currently) and expects to improve further. Additionally, it expects most of the incremental cash flow to fund incremental working capital needs, thus retaining net debt at current levels.
- The key raw materials prices have declined significantly (by 40-90%) from their peak levels. Thus after a 15% increase in pricing during FY09 the prices are expected to correct by 5% during FY 2010.
- The tax rate is expected to increase to 17-20% during the current fiscal.
- The capital expenditure for the current fiscal is maintained at Rs 150 –200 crore for product registrations and capacity expansion.
- The company completed the Cerexagri French restructuring, however the restructuring plans of Cerexagri plant in Spain is currently on hold.