AR link: http://www.ultramarinepigments.net/subpages/downloads/UPL_ANNUAL_REPORT-2016-2017.pdf
- an improvement of margins, with 17% gross profit from manufacturing (15.5% in FY16), and 32.8% gross profit from ITES (24% in fy16)
- improvements are due to a continuous upgradation of our technical capabilities with a sizeable investment in plant & machinery at both the manufacturing facilities
- On Pigment division: With a growing emphasis on R&D, we expect to keep pace with the value-added market globally and domestically (28% of sales)
- On surfactant division: With debottlenecking of the plant, we were able to add 20% to our capacity, which we were able to use fully ( 58% of sales)
- On windmill: The Company has optimised the ratio of captive consumption to sale to State Grid. This has resulted in reduction of power cost and outstanding dues from State electricity board
IT division reported an income of ` 31.36 crores, while the revenue growth remained muted, profit improved by 23% due to better pricing ( 12% of sales)
The export earnings from manufacturing divisions went up by 21% mainly on account of addition of more distributors in new overseas markets
- Earnings Per Share (EPS) is at
11.10 (Previous Year 9.37) and Cash Earnings Per Share (CEPS) is ` 12.51
- Availability of Alpha Olefin, a key imported rawmaterial of Surfactants division continues to be erratic, plagued by artificial shortages and delays in shipment
Regarding Gujarat plant expansion:
* The Company was allotted a plot in 2011 in Dahej by Gujarat Industrial Development Corporation forsetting up a manufacturing facility. In terms of the said allotment the Company has paid the consideration and possession letter for land was obtained in May 2014. The Company is obligated to set up a manufacturing facility within the specified period as per the terms and conditions of allotment, failing which penalty as per agreement is payable. No demand for penalty is received from GIDC for the period ended 31st March 2017. (Provision for ` 1,329,770/- was made in the year ended 31.03.2014).
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