Atul Limited net sales up by 44%, EBIDTA up 370%

Atul Ltd, a member of Lalbhai Group, announced its unaudited results for the quarter ended June 30, 2008.

During the quarter, net sales/income from operations grew by 44% to Rs299 crores as compared to the corresponding period in the previous year. While domestic sales grew by 46%, the export sales grew by 42%.  The EBITDA also grew substantially from Rs7 crores to Rs33 crores, before considering the impact of exchange rate difference. However, after considering the exchange rate difference of Rs16 crores, the Company reported a break even as compared to a loss of Rs3 crores in the corresponding period in the previous year.

Commenting on the performance, the Chairman and Managing Director, Mr. Sunil Lalbhai said:

1.    The exchange rate difference of Rs16 crores was mainly on account of translation and unrealized losses. Further, the Company took the decision to mark to market all the forward contracts relating to the current financial year covering the remaining three quarters also.

2.      The Company implemented in 2007-08 and is implementing new projects in the current fiscal in its 6 businesses which are expected to bring down the costs, increase volume and improve its market share. Thus, profitability is likely to improve.

The Company during this fiscal will complete expansion of 2,4D, p-Cresol, Resorcinol, Reactive, Sulphur and Vat dyes, DDS, DCDPS, certain APIs and their intermediates and BLRs. The Company has completed expansion of p-AA and and pAAl recently.

3.      During the last 5 years, brand sales have increased from nil to about Rs50 cr in its 2 divisions. This growth is sustainable and will help the Company to come close to the end users which in turn will improve the margins.

4.       The Company has high borrowing at present. The management is taking actions to improve its internal working as well as explore other options to strengthen the situation. The Company has also undertaken an ERP project in the remaining 3 divisions.  

5.   The number of employees is at its historic low. Further actions are underway to improve the productivity on the one hand and more importantly strengthen the management to foster the required changes keeping the tradition of conducting business with values on the other. 

Sourced From: Madison Public Relations