The Hindu Business Line : Godavari Fert turns around; posts Rs 7.15 cr net

GODAVARI Fertilisers and Chemicals Ltd (GFCL), a part of the Rs 5,200-crore Murugappa group, has achieved a turnaround during 2003-04 and posted a net profit of Rs 7.15 crore as against a net loss of Rs 13.62 crore in the previous year.

As per the audited financial results, the company had posted a turnover of Rs 897.08 crore last fiscal as against a turnover Rs 737.85 crore registered during the previous year.

Its basic and diluted earnings per share during the year stood at Rs 2.24. The company had provided Rs 3.13 crore towards deferred tax liability.

According to a company press release here on Monday, GFCL came out of the red on account of rationalisation of product mix and discontinuance of loss making product lines, improvement in realisation, reduction in logistics cost, higher capacity utilisation and improved working capital management.

This apart, the company had inducted Groupe Chimique Tunisien of Tunisia and Foskor Ltd of South Africa, who were major suppliers of phosphoric acid to GFCL, as strategic partners.

The company had also entered into long-term sourcing agreement with Mitsui & Co of Japan for supply of ammonia, the other major raw material of GFCL, which produces di-ammoniam phosphate.