Kanoria Chemical & Industries Ltd

Kanoria Chemicals & Industries Limited

(KCI), India's leading manufacturer of chemical intermediates, has registered good performance for the third quarter and nine-month ended December 31, 2007. KCI, reported net revenue of Rs110.88 crore and net profit of Rs 6.27 crore for Q3FY08.

EBITDA for Q3FY08 stood at Rs 25.17 crore showing a rise of 10% as compared to Rs22.88 crore for Q3FY07. The operating margins for Q3FY08 stood at 22.7% as against 19.8% in Q3FY07.

Net revenue of 9MFY08 stood at Rs 320.13 crore up 0.5% as compared to the corresponding period last fiscal. Net profit at Rs 27.44 crore for 9MFY08 has also shown strong growth as compared to Rs 14.06 crore for the corresponding period last year. EBIDTA for 9MFY08 stood at Rs 79.73 crore, a 34.5% jump over the same recorded in the previous period.

Commenting on the strong numbers posted for Q3FY08, Mr. R.V. Kanoria, CMD, Kanoria Chemicals & Industries Limited said, "We are pleased with the performance of the company in the three quarters of fiscal 2007-08. Our expansions activities are on schedule and we expect to complete our Caustic Soda project by the end of this quarter. We have maintained our strong growth trajectory and the results are in line with our internal objectives."

Operational Highlights

Vizag Plant

KCI announced setting up a new integrated Alco chemical complex at Vizag to manufacture Pentaerythritol, a chemical extensively used in manufacturing of paints. It will also manufacture formaldehyde, acetaldehyde, hexamine, ethyl acetate and acetic acid.

The project will help KCI in consolidating its leadership position in the Alco Chemicals segment in India. The capacity addition would meet enhanced demand of the paints and other user industries. The location at Vizag is of importance. Being located near the seaport it would enable the company to manage its international trades more economically.