New Delhi, (IndiaPRwire) Kanoria Chemicals & Industries Limited (KCI), India’s leading manufacturer of chemical intermediates, has registered a spectacular performance for the second quarter and half year ended September 30, 2007. EBIDTA for H1FY08 was at Rs 55 crore, while net profit for H1FY08 stood at Rs 21 crore, a three-fold jump over the same recorded in the previous half-year in financial 2006‑07.
The economies of expanded capacity were realized in the form of lower input costs and operational efficiencies which led to increases in operating margins.
“We have a clear strategy and well-defined priorities. We are executing our plans with discipline to deliver strong financial results for the Company. We are also now focussing on export markets for some value-added products”, said Mr. R.V. Kanoria, Chairman & Managing Director, Kanoria Chemicals & Industries Limited.

Q2FY08 Highlights

For the second quarter ended September 30, 2007 net revenues from sales stood at Rs 104 crore, EBIDTA was at Rs 28 crore while net profit for Q2FY08 stood at Rs 11 crore. The operating margin for the quarter stood at 27%, registering an increase from the previous quarter’s 19%. The non-annualized basic and diluted EPS at the end of H1FY’08 stood at Rs 11.49 and Rs 8.75 (for Rs 10 paid up share) respectively.
“With a diverse product base catering to a wide range of applications, our strong focus continues to be on ensuring a low cost structure through operational efficiencies. We are pleased with the Company’s performance during the first six months of fiscal 2007-08. Our next expansion programme is on schedule and we expect to reap even higher benefits from the next financial year,” added Mr. Kanoria.

STOCK SPLIT

The board took decision to split stocks of the company – a ten rupee share now will be split into two shares of Rs five each. This will increase the number of shares of the company to 37,531,000 from current 18,765,500 after the shareholders approve the proposal.
"Today's announcement of a stock split reflects the confidence of our Board of Directors in KCI’s growth strategies combined with the long-term business opportunities that lie ahead. We believe that the split will make our stock more attractive to a broader investor base,” added Mr. Kanoria.

BONUS SHARES

The Board of Directors of the Company also approved issue of bonus shares – one share for every two shares held to be issued after clearance of the shareholders.
Mr. Kanoria, said “The company has strong reserves and since the company is on a growth trajectory which can support an expanded capital, the Board felt the need to share the benefits with its shareholders."

Editor’s Synopsis

• Financial Highlights H1FY08
• Net Sales at Rs 209 crore
• EBIDTA at Rs 55 crore, an increase of 50%
• Net profit at Rs 21 crore, more than trebles from last half year
• Operating margins at 26% as compared to 18% in the corresponding previous half

Financial Highlights Q2FY08

• Net Sales at Rs 104 crore
• EBIDTA at Rs 28 crore, an increase of 36%
• Net profit at Rs 11 crore, an increase of 127%
• Operating margins at 27% as compared to 19% in the corresponding previous quarter

Other Highlights

• Stock Split – From Current face value of Rs. 10 to Rs. 5
• Bonus Shares – One Equity Share for every two Equity Shares