Gujarat Alkalies posted a 19% increase in bottomline to Rs 55.27 crore in quarter ended June 2012 compared to corresponding previous year period on a 5% increase in topline to Rs 441.05 crore. OPM of the company fell 160 bps to 26.7%. As a result operating profits rose 6% to Rs 108.15 crore. Other income of the company rose 84% to Rs 0.94 crore. Interest cost fell by 51% to Rs 2.96 crore. Depreciation rose 5% to Rs 34.61 crore. PBT before EO was up 1% to Rs 81.02 crore. The company reported EO expenditure of Rs 15.87 crore in the corresponding previous year period related towards interest and delay payments charges on Electricity Duty Payable under protest for earlier years. As a result PBT after EO rose 26%. The effective tax rate jumped to 32% from 28% owing to which the company's net profit rose 19% to Rs 55.27 crore

Performance for the quarter ended June 2012

For quarter ended June 2012, the top-line rose 5% to Rs 441.05 crore compared to corresponding previous year period. The company operating margins fell 160 bps to 26.7% as consumption of raw materials as a percentage of net sales (net of stock adjustment) rose 60 bps to 40.5%, power and fuel expenses rose 100 bps to 12.4%, other manufacturing and operative costs increased 40 bps to 10.2% offset by no purchase of stock in trade benefiting 50 bps and 80 bps decrease in other expenditure to 3.2%. Employee cost remained flat at 7%. As a result operating profits rose 6% to Rs 108.15 crore.

Other income of the company rose 84% to Rs 0.94 crore. Interest cost fell by 51% to Rs 2.96 crore. Depreciation rose 5% to Rs 34.61 crore. PBT before EO was up 1% to Rs 81.02 crore. The company reported EO expenditure of Rs 15.87 crore in the corresponding previous year period related towards interest and delay payments charges on Electricity Duty Payable under protest for earlier years. As a result PBT after EO rose 26%. The effective tax rate jumped to 32% from 28% owing to which the company's net profit rose 19% to Rs 55.27 crore

Performance for the year ended March 2012

For year ended March 2012, the top-line rose 19% to Rs 1710.97 crore mainly due to increase in price realization of Caustic Soda group, Phosphoric acid, Sodium Cyanide, Ploy Aluminium Chloride Group, Chlorinated Paraffin wax, Benzyl Chloride and Benzyal Alcohol products. The company operating margins improved 380 bps to 22.6% as cost of raw materials as a percentage of net sales (net of stock adjustment) fell 140 bps to 41.4%, purchase of stock in trade fell 60 bps to 0.5%, employees cost fell 120 bps to 6.8% and a 20 bps decrease in other expenses to 3.6%. Power and fuel cost fell 70 bps to 15.2%. As a result operating rose 44% to Rs 387.32 crore.

Other income fell 2% to Rs 11.77 crore. Depreciation rose by 4% to Rs 138.95 crore. Interest cost fell 3% to Rs 20.53 crore. PBT before EO rose 89% to Rs 239.61 crore. The company had an EO expenditure amounting Rs 15.99 crore related to quarter ended June 2011 representing provision made towards interest and delay payment charges on electricity duty payable under protest for earlier years. PBT after EO rose 76% to Rs 223.62 crore. The effective tax rate rose to 31% from 10% owing to which the company's net profit was up 34% at Rs 153.61 crore.

The company has already got three projects registered with UNFCCC (United Nation Framework convention on climate Change) under CDM (Clean Development Mechanism) and has taken actions for few more projects including windmill projects. During the quarter the company has been issued 17378 CER approved by UNFCCC and plans to monetise the same with other accumulated CER in the current year.

The announced projects of the company are progressing at various stages and some of these projects are under review and some of them are expected to go on stream by FY'15.

Promoter's shareholding remains unchanged at 36.72% at the end of quarter ended June 2012 compared to previous quarter.

The scrip is currently trading at Rs 128 on the BSE.

Gujarat Alkalies: Results