Vanavil Dyes & Chemicals sales at Rs12 cr

Our Corporate Bureau
25 July 2002

Mumbai: Vanavil Dyes and Chemicals Ltd, a subsidiary of Colour-Chem Ltd, has recorded sales (net of excise duty) of Rs11.96 crore during the quarter 30 ended June 2002 compared to Rs9.90 crore during the corresponding period last year.

There has been a marginal increase in export sales from Rs6.18 crore during April-June 2001 to Rs6.51 crore during April-June 2002. The local sale of manufactured products were higher at Rs4.49 crore during the three months April-June 2002 compared to Rs3.01 crore during the corresponding period of the previous year, mainly due to an increase in the sale of phthalocyanine blue pigments.

Sales of traded products were also marginally higher by Rs0.25 crore. Despite the increase in the companys sales, the profit before tax during April-June 2002 was lower at Rs0.42 crore compared to Rs0.70 crore during April-June 2001. This is mainly due to the lower price realised on phthalocyanine pigments and also due to a decrease in export incentives.

The profit before interest, depreciation and taxes amounted to Rs1.41 crore against Rs1.75 crore earned during April-June 2001. Interest charges were lower at Rs0.22 crore compared to Rs0.31 crore due to a better management of working capital, and depreciation was higher at Rs0.77 crore (Rs0.74 crore.)

The company's efforts to reduce its costs have borne fruit and expenses have been reduced in several areas of operations. After providing Rs0.12 crore for current and deferred tax, the profit after tax stood at Rs0.30 crore during the quarter ended 30 June 2002, as compared to Rs0.58 crore during the corresponding period of the previous year.

Vanavil officials say it is gratifying to note that the company has been receiving orders for its phthalocyanine blue pigments, both from export and local markets. Based on the current trend, the company is expected to perform better during the remaining period of the current year.