Jayshree Chem sees lower costs nip FY10 revenues

Caustic soda maker Jayshree Chemicals Ltd is expecting a 16% decline in its FY10 turnover on the account of lower output prices, a senior official said on Monday.
"In the current quarter, the prices of caustic soda have come down to Rs 18,000 per metric tonne, compared to Rs 21,000 per metric tonne during the first three quarters of 2009-10. As a result of this our turnover during FY10 would be around Rs 550 million" Executive Director DK Maheshwari told reporters.
The company had posted revenues of Rs 660 million in 2008-09.
However, Maheshwari said, the trend is temporary and the prices are expected to firm again to Rs 20,000 per metric tonne levels from April-end, he said.
"The next financial year is expected to be steady and with our new facilities coming up, we expect a turnover of 1-1.1 billion rupees by March 2011."
The Kolkata-based company has set out a Rs 1.5 billion expansion plan to raise its per day caustic soda production capacity to 152 tonnes from the present 65 tonnes by December 2010, he said.
The company plans to raise part of the money for the expansion by issuing 23.99 million equity shares for Rs 15 a share to existing shareholders on a rights basis in the ratio of 9 shares for every 2 shares held as on Feb 18.
The rights issue will generate up to Rs 359.91 million, which will be utilised to support the expansion plans, he said.