The Hindu Business Line : FACT posts Rs 19 cr net in the first half

Kochi, Oct. 31 The public sector Fertilisers and Chemicals Travancore Ltd (FACT) has recorded a net profit of Rs 19.28 crore during the first six months of the current fiscal with a cash profit of Rs 41.6 crore as against a loss of Rs 92.1 crore in the corresponding period of last year.

This turnaround of the company has been made possible in spite of several odds like shortage of rock phosphate and phosphoric acid along with its skyrocketing prices, power cut and tariff hike imposed by KSEB etc, Mr George Sleeba, Chairman and Managing Director, said at a press conference here on Friday.

He pointed out that introduction of a new subsidy policy based on the recommendations of the new Tariff Commission Report and inclusion of ammonium sulphate under the subsidy scheme helped the company improve its performance during the period. With this growth, the company is aiming to achieve a net profit of Rs 50-60 crore by the end of the current fiscal, he added.

The CMD said that the company achieved a sales turnover of Rs 1,037 crore during the half year period as against Rs 617 crore during the same period last year. The overall production of fertilisers has been good with an offtake of 2.16 lakh tonnes of factamfos and 44,500 tonnes of ammonium sulphate. FACT is planning to improve the production of factamfos and ammonium sulphate during the second half of the current fiscal with expected improvement in the availability of raw materials.

These products along with imported urea and MoP (Muriate of Potash) will cater to the fertiliser needs of the farmers. The company hopes to complete the current financial year with a reasonably good profit after several years of struggle and hard work, he added.

Though there has been a general slowdown in the production of phosphoric fertilisers all over the country, particularly in South India due to the steep hike in raw material prices, he said FACT could sustain production to a great extent and make fertilisers available to the farmers during the peak of demand.

FACT is in the process of increasing sales turnover by marketing imported urea and MOP. Together about 65,000 tonnes of these products were imported during the first six months period, which is an all time record. The company is also continuing to concentrate on maximum revenue generation from sale of waste gypsum. The sale of gypsum during the first six months is over 1.45 lakh tonnes.

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