The Hindu Business Line : FACT reduces loss in first half

THE ailing Fertilisers and Chemicals Travancore Ltd (FACT) has improved its turnover during the first half of the current fiscal and reduced loss despite skyrocketing prices of major inputs.

The total income during the period went up to Rs 638.50 crore from Rs 535.20 crore in the first half of 2004-05. After providing for interest on Government of India loan, the loss stood at Rs 85.93 crore as compared to Rs 97.08 crore in the corresponding period the previous year, an official press release here said.

The Board of Directors of the company had also approved the un-audited financial results of the company for 2004-05 which had been kept in abeyance anticipating release of the promised relief package, it said.

During April-September 2005-06, the company made substantial improvement in production and sales turnover with the sale of the premium product Factamfos going up to 3.54 lakh tonne from 2.57 lakh tonne in the same period last fiscal. The total sale of all fertilisers also increased to 4.56 lakh tonne from 3.84 lakh tonne. "Inventory position is one of the best in the history of the company and the sales are almost fully on cash terms," the release said.

As for the final figures for the year ended March 2005, there is substantial reduction in loss compared to the previous year to the extent of Rs 70 crore.

The company, while drawing up the final figures for the year, has chosen the prudent path by providing interest on Government of India loan for 2003-04 and 2004-05, though in the relief package approved by the Department of Fertilisers and awaiting clearance by the Board for Reconstruction of Public Sector Enterprises, write-off of interest on Central Government loan for these years is a major component.

With this provision, the loss for the year 2004-05 stood at Rs 167.96 crore, the release said.

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