Financial Daily from THE HINDU group of publications
Tuesday, Jan 29, 2002
Financial Daily from THE HINDU group of publications Tuesday, Jan 29, 2002 |
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Corporate Results
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Fertilisers Indo Gulf Q3 net up 36 pc at Rs 88.2 cr Our Bureau
MUMBAI, Jan. 28 INDO Gulf Corporation Ltd (IGCL) has reported a 36.3 per cent increase in net profit at Rs 88.2 crore for the third quarter ended December 31, 2001 as compared to Rs 64.7 crore in the year-ago period. The company's copper business continues to be the major growth driver while the fertiliser sector performance continues to be inhibited by the regulatory constraints. The company focuses on improved realisation, cost-reduction in all areas and enhanced operating efficiencies. Net sales for the quarter stood at 11.5 per cent at Rs 765.1 crore (Rs 686.4 crore). The copper division registered sales of Rs 645.04 crore, up 27 per cent from Rs 507 crore in the year-ago period, despite a reduction of 17.3 per cent in prices due to a fall in LME prices. According to the company, expansion of its copper smelter and export growth contributed to this division's performance. The smelter's capacity was raised to 1,50,000 tonnes per annum from 1,00,000 tonnes. Copper exports were 13,472.6 tonnes as compared to 4,700.3 tonnes in the year-ago quarter. In value terms, exports increased by 137 per cent to Rs 126.8 crore. Profits from copper exports were Rs 131.40 crore. Di-ammonium phosphate (DAP) production was 39,086 tonnes. However, turnover of the fertiliser division was down by 33 per cent at Rs 120.1 crore during the quarter (Rs 179.4 crore). "As a result of the interim reassessment of the urea capacity, coupled with the restriction on production, urea production during the quarter was 2.4 lakh tonnes (2.2 lakh tonnes),'' the company said in a news release. "The cap on production by the Government continues to result in under- utilisation of the assets and the reduction in the retention price by the government has severely impinged upon its fertiliser business,'' the release said. Fertiliser business contributed Rs 14.36 crore towards profit before tax and interest. The company expects its copper division to drive growth in revenues mainly because of the impetus on power and telecom sectors. The company is vesting hope in exports of copper and is banking on its locational advantage. However, growth in the company's fertiliser business would depend on Government policy. "Any rational or growth oriented policy on the part of the Government will ensure sustained profitable growth for Indo Gulf,'' the release said. For the nine-month period, IGCL's net rose to Rs 214.88 crore (Rs 155.75 crore) on sales of Rs 2,040.01 crore (Rs 1,664.62 crore).
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