The Hindu Business Line : Coromandel Fertilisers net up 21 pc, to pay 85 pc

Coromandel Fertilisers Ltd (CFL), has earned a net profit of Rs 83.55 crore during the financial year 2005-06, up 21 per cent over the previous year's Rs 69.19 crore.

The board of directors of the company has recommended payment of dividend of 85 per cent against 75 per cent last year. The overall turnover, which has been the best for CFL, was pegged at Rs 1,874.71 crore (Rs 1,554.17 crore), a growth of 21 per cent.

Announcing new records both in production and sale of complex fertilizers with a growth of over 27 per cent (18.5 per cent), the company attributed it mainly to improved operational efficiencies on energy front, reduction in conversion/distribution costs.

In a press release here, CFL, a constituent of the $1.5-billion Murugappa group, said its board approved the audited financial results for the year. The release pointed out that the financing costs were higher due to delay in settlement of subsidy dues by the Government which led to an increase in working capital borrowings.

Investor complaints

During the last quarter of the fiscal, the company received 67 investor complaints and responded to them. In March 2006 CFL entered into a share purchase agreement for acquiring 50.27 per cent of equity capital of Ficom Organics Limited (FICOM), from its promoters. FICOM is into manufacturing technical grade pesticides at its Ankaleswar unit in Gujarat.

The acquisition will enable the company to broaden its product range and expand the export base. CFL has also made a public announcement to the shareholders of FICOM for acquiring up to 24 per cent equity share under SEBI guidelines.