The Hindu Business Line : IPCL posts sharp drop in Q4 net

Mumbai, June 30 Indian Petrochemical Corporation Ltd reported a sharp drop in net profit at Rs 18 crore for the quarter ended March 31, 2007 as against Rs 321 crore in the year-ago period.

According to the company, the huge decline in profit is on account of the one-time expenses of Rs 470 crore it had to incur during the quarter. This includes the VRS payment of Rs 376 crore and a provision of Rs 94 crore made for losses suffered by the company’s investments in Gujarat Chemical Port Terminal and Indian Vaccine Corporation Ltd.

2,600 accept VRS

The company, which is being merged with Reliance Industries Ltd, said that it had announced a VRS and a special separation scheme for the Vadora unit and over 2,600 employees accepted the VRS.

The profit before tax and extraordinary items was higher at Rs 462 crore as against Rs 436 in the corresponding previous quarter. The net turnover for the quarter increased marginally to Rs 3,007 crore (Rs 2,913 crore).

Net profit for the full year ended March 31, 2007 also declined to Rs 1,032 crore (Rs 1,164 crore).

Earnings per share on a diluted basis after extraordinary items for the quarter works out to Rs 0.60 (Rs 29.34). However, before considering the extraordinary items, it is Rs 16.23 (Rs 29.34).

IPCL shares closed at Rs 343.05 on BSE on Friday.

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IPCL Q2 net up 9.3 per cent

More Stories on : Financial Performance | Petrochemicals

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