New Delhi: Total net sales for the year 2007 grew by 24.4% and for the quarter ended 31December 2007, by 21.6% over the same period last year.
Net domestic sales and export sales for the year increased by 25.2% and 17.9% respectively, due to increase in volumes as well as realizations which were negatively impacted by the appreciation of the Indian rupee
Commenting on the company’s performance, Martial Rolland said “During the last three years we have delivered a double digit profitable growth in 10 quarters, and in the last year over 20% growth in each quarter. We have also improved our use of natural resources as well as reduced drastically waste and emissions over the past decade.”
EBIT for the full year grew by 30.8% resulting in an EBIT margin of 17.7%, an 80 basis point improvement over 2006. EBIT for the quarter ended 31December ‘07 grew by 32.6% resulting in an EBIT margin of 15.3%, a 130 basis point improvement over the corresponding quarter of 2006.
The ongoing strategic transformation process, as well as scale efficiencies and cost reduction initiatives allowed the business to more than offset higher raw materials costs which continue to remain at record high levels and pose an ongoing challenge.
Reported net profit grew by 31.3% resulting in a net margin of 11.7%, an increase of 60 basis points over 2006. Reported net profit for the quarter ended 31December ‘07 grew by 49.9% resulting in a net margin of 10.3%, an increase of 190 basis points over the corresponding quarter of 2006. Part of this improvement is due to a provision of Rs.101.0 million made in the last quarter of 2006 (due to a change in procedure by the concerned external authority) which otherwise would have been made in first quarter of 2007. Excluding the impact of this provision the net profit for the full year 2007 and quarter ended 31December ‘07 grew by 24.1% and 29.0% respectively.
The Board of Directors recommended a final dividend of Rs2.50 per equity share (nominal value Rs.10/- per equity share). This is in addition to the two interim dividends for 2007, of Rs6.50 and Rs24 per equity share, paid in March 2007 and December 2007 respectively, making the aggregate dividend Rs33 for the year 2007.