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Dear Members,
The Board of Directors (Board) presents the Annual Report of Atul Ltd together with the audited statement of accounts for the
year ended March 31, 2014.
Financial Results
(
`
cr)
2013-14
2012-13
Sales
2,307
1,964
Revenue from operations
2,365
2,001
Other income
40
21
Total revenue
2,405
2,022
Profit before tax
297
192
Provision for tax
84
56
Profit for the year
213
136
Tax adjustments for the earlier years
-
-
Profit available for appropriation
213
136
Balance brought forward
498
397
Disposable surplus
711
533
Appropriations
General reserve
21
14
Proposed dividend
22
18
Dividend distribution tax
4
3
Balance carried forward
664
498
Performance
Sales increased by 17% from
`
1,964 cr to
`
2,307cr aided
by both higher volumes (8%) and prices (9%). Sales in India
increased by 22% from
`
986 cr to
`
1,199 cr. Sales outside of
India increased by 13% from
`
978 cr to
`
1,108 cr. Revenue
from operations increased by 18% from
`
2,001 cr to
`
2,365
cr. PBT for the year includes about
`
20 cr of one-time special
dividend income received; including such special income, the
earnings per share increased from
`
45.69 to
`
71.74. While the
operating profit before working capital changes increased by
38% from
`
260 cr to
`
360 cr, the net cash flow from operating
activities declined by 16% from
`
167 cr to
`
141 cr mainly on
account of the growth in working capital consequent to the
higher level of sales achieved.
Both the Segments of the Company, namely, Life Science
Chemicals Segment (LSC) and Performance and Other Chemicals
Segment (POC) showed improvement in performance. The
sales of LSC increased by 6% from
`
699 cr to
`
738 cr, aided
by higher sales of Crop Protection and Pharmaceuticals and
Intermediates and its EBIT increased by 8% from
`
139 cr to
`
150 cr. The sales of POC increased by 24% from to
`
1,265 cr
`
1,569 cr, supported by growth in Colors and Polymers and its
EBIT increased from
`
90 cr to
`
173 cr. More details are given in
the ‘Management Discussion and Analysis’ Report.
The Company reduced its borrowings (including current
maturities on long-term borrowings) by 1% from
`
355 cr to
`
351 cr despite the growth in working capital to support higher
sales and payments towards capital expenditure of about
`
100 cr.
The Company improved its credit rating from ‘AA-‘ (double A
minus) to ‘AA’ (double A) for its long-term borrowings, awarded
by CARE. Its rating for short-term borrowings and commercial
paper remained at A1+, the highest possible, awarded by CARE.
The Company is in the process of implementing 33 projects with
a total outlay of about
`
480 cr; these projects are expected to
be commissioned in during 2014-15 and 2015-16. It completed
14 projects related to environment protection during 2013-14
and is expected to complete 8 more projects for reducing and
treating pollutants.
Dividend
The Board recommends payment of dividend of
`
7.50 per
share on 2,96,61,733 Equity Shares of
`
10 each fully paid-
up. The dividend will entail an outflow of
`
26 cr (including
dividend distribution tax) on the paid-up Equity Share capital
of
`
29.66 cr.
Management Discussion and Analysis
Management Discussion and Analysis covering performance of
the two Reporting Segments, namely, Life Science Chemicals
and Performance and Other Chemicals, is given at page no 27
to 33.
Directors’ Report