The Hindu Business Line : Godavari Fert net at Rs 49.29 cr

Hyderabad April 18 Godavari Fertilisers and Chemicals Ltd (GFCL), a Murugappa group company, has achieved a sales turnover of Rs 1,800 crore during 2006-07 against Rs 1,520 crore last year, showing a growth of 18 per cent.

The net profit stood at Rs 49.29 crore for the year against Rs 26.10 crore in the previous year, an increase of 89 per cent. The board of directors has recommended a dividend of 40 per cent for 2006-07.

"This is the fourth successive year of profitable growth since we took over it from the Government of Andhra Pradesh in July 2003," Mr K.A. Nair, Managing Director, said.

He, however, said the company's operations were affected by shortage in phosphoric acid, delay in receipt of subsidy and non-reimbursement of freight increases.

During the year, the company registered an all-time high in output by producing 11.35 lakh tonnes (10.24 lakh tonnes). At the time of takeover of the company, production was 7.43 lakh tonnes.

Mr Nair attributed the higher volumes to efforts made in removing bottlenecks and changes in processes, without any major capital expenditure during the last four years.

Expansion plan

The company's Rs 82-crore plan, which sought to increase the production capacity by 4.25 lakh tonnes, was pending before the Union Ministry of Environment and Forests. "This project is expected to be commissioned during early 2009," Mr Nair said in a press release.

Coromandel Fertilisers Ltd (CFL), another Murugappa group company, increased its stake in GFCL to 75 per cent from 45.07 per cent during 2006-07.