KANCHI KARPOORAM - Q1 FY 18-19- RESULTS REVIEW

KANCHI KARPOORAM

Q1 FY 18-19 RESULTS REVIEW

Incorporated in the year 1992, Kanchi Karpooram Limited (KKL) manufactures Camphor, its derivatives, Gum rosin, Value Added Resins and Fortified Rosin.

KKL has a proven track record for quality, competitive price and timely supply of its products. The main product is Camphor which has been well accepted in the market. Besides Camphor and its Derivatives, KKL’s other products such as Gum rosin and Rosin Derivatives, also enjoy an enviable share in the market including Corporate Clientele.

KKL’s unit is situated near KANCHEEPURAM, 70 KM from Chennai. KKL’s turnover is around Rs.46.6 cr in Q1 and planned to augment the sales in a phased manner in the times to come.

KKL has adequate, modern equipments and machinery for manufacturing of Camphor and Gum Rosins. KKL has a High Profile technical team to carry out manufacturing activities with quality and quantity awareness.

KKL has qualified and experienced personnel for online process and other quality control checks for incoming raw materials and finished goods. Quality control tests are being carried out meticulously. Kanchi Karpooram Limited laboratory is fully equipped with the latest equipments.

KKL has been certified with ISO: 9001:2008 by the Certified body of Tuv Sud South Asia Private Limited.

KKL enjoys the patronage of various clients including corporates for its various products.

KKL is South India’s first and largest producer of a variety of Terpene and Paper chemicals. The Products range from Turpentine-based chemicals like Camphor, Dipentine, Iso Bornyl Acetate, Soudium Acetate Trihydrate etc, To Gum rosin and its derivates such as Fortified Rosin, Ester Gum, Phenolic / Maleic Resins and many others. We are keen to develop and expand our customer base to provide industries with a stable, continuous supply of raw materials from a totally new source.

List of products

CAMPHOR  : KANLIC 501 MALEIC RESIN

CAMPHENE : KANLIC 502 SPIRIT SOLUBLE MALEIC RESIN

DIPENTENE : KANLIC 503 NC COMPATABLE MALEIC RESIN

ISO BORNYL ACETATE : KANLIC 601 PHENOLIC RESIN

SODIUM ACETATE TRIHYDRATE : KANLIC 602 PHENOLIC RESIN

PINE PITCH : KANLIC 603 NC COMPATABLE PHENOLIC RESIN

DOUBLE DISTILLED TURPENTINE : KANLIC 605 H.M PHENOLIC RESIN

D.TURPENTINE OIL : KANLIC 607 H.M /LV HENOLIC RESIN

PINE TAR (NATURAL)  : KANESTER – 707

PINE OIL :    KANKOL – 50

PENTA ESTER GUM : GUM ROSIN : TERPENE PHENOLIC RESIN

Q1 FY 18-19 RESULTS REVIEW :

kanchi karpooram	Jun '18	Mar '18	Dec '17	Sep '17	Jun '17	YOY	QOQ
Net Sales	46.6	34.1	30.3	29.8	20.4	128	36.7
RawMaterial	30	24.2	22.1	16.9	15.3	96.1	24.1
P/L Before Other Inc. , Int., Excpt. Items & Tax	14.3	6.78	5.92	6.62	4.48	219.9	111.4
P/L Before Tax	14.12	6.74	6.06	6.23	4.04	249.5	109.5
Tax	4.08	2.09	2.25	2.21	1.33	206.77	95.22
Net Profit	10.1	4.65	3.81	4.02	2.7	271.9	115.9
Equity	4.14	4.14	4.14	4.14	4.14	0	0
Basic EPS	24.23	11.24	9.19	9.69	6.52	271.6	115.6
Diluted EPS	24.23	11.24	9.19	9.69	6.52	271.6	115.6
MP	530
PE	5.47
FV	10
VOLUME	5898
PRICE TREND
05.09.18	1 wk	2 wk	1 mnth	3 mnth	6 month	9 month	1 year
Price	466.9	365.9	266.2	241.2	250.5	129.8	63.1
Gain	13.62%	44.97%	99.27%	119.97%	111.8%	308.8%	740.7%

On annual Basis, Net sales has increased from 66 Cr in previous year to 117 Cr in current year (44% growth). Net profit has increased from Rs.3 cr to 15.18 cr, almost 5 times

EPS has increased from 7.32 to 36.65

The company proposes to issue preferential shares to  certain Investors of promoter Group, convertible into equity shares within 18 months for cash. The Authorised capital will be increased from 5 cr to 7 cr.

Co. has recommended dividend at Rs.2 per share subject to shareholder approval in AGM DATED 27^TH SEP,2018

25^TH ANNUAL REPORT 2018

EXCERPTS

BOARD OF DIRECTORS

Mr.. Suresh V Shah, Managing Director

Mr. Dipesh S Jain, Whole-time Director

Mr. Arun V Shah, Whole-time Director

General risks:

Foreign Exchange fluctuations may have adverse effects due as your Company imports huge raw materials.

Price of main raw material may have an adverse effect if the demand and supply gap is widen. 

Financial risks:

Company needs to import raw materials at appropriate time, which warrants sizable works capital with a conscious approach to the degree of risk in terms of procurement of raw material keeping in view of the finance available.

Company has increased the volume in sales, hence a better performance compared to the previous year. Your Company exercises stringent cost control factors and quality control measures so as to sustain consistent in performance.