India's DCW net pft falls 50% in Q1 on PVC forex losses

30 July 2004 10:43  [Source: ICIS news]

NEW DELHI (CNI)--Indian polyvinyl chloride (PVC) and chlor-alkali producer DCW Ltd posted a 50% fall in net profit to Rs14.4m ($310 350/Euro257 500) in the first quarter of its financial year to 30 June 2004 from Rs28.9m in the same period of previous year.

The crash was triggered by foreign exchange-related losses incurred by the company’s PVC division, a fall in operating profit of other businesses, and an increase in intermediate prices.

DCW’s caustic soda and soda ash businesses logged solid growth in operating profit, thereby preventing a bigger fall in net profit.

The company increased net sales by 20.4% to Rs1.60bn from Rs1.33bn a year earlier. Operating profit plummeted by 37.6% to Rs58.46m from Rs93.78m.

The PVC resins business incurred a loss before interest and tax (LBIT) of Rs35.1m compared to a profit before interest and tax (PBIT) of Rs18.0m in the same period a year earlier.

The chlor-alkali division boosted PBIT to Rs35.4m from Rs8.1m while the soda ash business increased PBIT to Rs12.9m from Rs11.8m. 

DCW has a 60 000 tonne/yr PVC plant at Sahupuram in Tamilnadu. It operates a chlor-alkali plant with a capacity to produce 60 000 tonne/year of caustic soda lye and 40 000 tonne/year of chlorine. The company runs a 33 000 tonne/year hydrochloric acid plant and a 5400 tonne/year trichloroethylene unit at the same site.

DCW operates a soda ash plant with a 92 000 tonne/year capacity at Dhrangadhra in Gujarat, and also produces sodium bicarbonate, ammonium bicarbonate and bromine at the same site.

By: Naresh Minocha
+65 6780 4359

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