Kanoria Chemicals Net Profit at Rs 5.68 crore

The Net Profit for Q1FY09 was Rs 5.68 crore. Pursuant to the requirement of the Accounting Standard 11, the company is required to account for gain/loss arising from changes in foreign exchange rates. Accordingly, the Company made a provision for uncrystallised loss of Rs. 6.24 crores during the quarter as against unrealized gain of Rs. 6.74 crores in the corresponding quarter of the previous year on various FCCBs related transactions. The Net Profit almost trebled excluding the impact of these uncrystallised loss/unrealized gain.

Commenting on the strong numbers posted for Q1FY09, Mr. R.V. Kanoria, CMD, Kanoria Chemicals & Industries Limited said, "Our strategies coupled with efficient execution have helped us sustain our growth momentum. The expansion in our Caustic Soda production capacities has begun to show results and we look forward to leveraging this to meet the growing demand."

Operational highlights
Along with increase in capacity for Caustic Soda, KCI has also expanded capacities for downstream Chlorine derivative products. The company recently commissioned Chlorinated Paraffin project with an installed capacity of 11,500 TPA.

About Kanoria Chemicals
Kanoria Chemicals & Industries Limited (KCI) (BSE: 506525; NSE: KANORICHEM) is a leading manufacturer of chemical intermediates in India. KCI has two manufacturing facilities, one at Renukoot in Uttar Pradesh, which manufactures Caustic Soda, Chlorine and Chlorine derivatives including water treatment chemicals; and the second at Ankleshwar in Gujarat, which manufactures Alcohol based intermediates. KCI operates two 25MW thermal power plants in Renukoot, and enjoys cost advantage as a result of backward and forward integration. The company's portfolio comprises of over twenty products, with a market leadership in six and substantial shares in all others. The company is recognized for its environment management practices. For the year ended March 31, 2008, Kanoria Chemicals & Industries Limited reported total income of Rs 432 crore and Net Profit of Rs 31 crore. More information about the company is available at www.kanoriachem.com .