The Hindu Business Line : EID Parry net drops 23 pc on drought, fertiliser policy

EID Parry Ltd has attributed the 23 per cent fall in net profit for the year 2002-03 to the "severe drought in our markets" and "the Government announcing a revised policy on subsidy to complex fertilisers with retrospective effect from April 1, 2002".

The company today reported a net profit of Rs 26.83 crore for last year, compared to Rs 34.83 crore for the previous year. The board has recommended a dividend of Rs 6 per share (60 per cent).

In 2002-03, EID Parry achieved a turnover of Rs 1,321.76 crore against Rs 1,469.62 crore in 2001-02, a 10.5 per cent decline.

"The Government's fertiliser policy alone impacted profits to the tune of Rs 14.37 crore," says a press release from the company. The drought affected fertiliser take-off and prices "had also contributed to larger receivables".

Also, "sugar prices touched an all time low due to high stocks and the collapse of regulated releases to the market".

The redeeming feature was the 9 per cent growth in sanitaryware sales and an interest cost reduction to Rs 37.03 crore, compared to Rs 58.66 crore previously, which came from retiring Rs 106 crore of high-cost debt during the year.

The fall in the net profit, is despite a smaller incidence of deferred tax, which was Rs 7.20 crore last year, compared to Rs 19.93 crore in the year ago.

In fact, it was a `deferred tax asset' that helped EID Parry report a higher net profit for the fourth quarter. Net profit for the quarter was Rs 14.74 crore, compared to Rs 12.19 crore in the previous year period.

In the fourth quarter of last year, there was a `deferred tax asset' of Rs 1.05 crore, compared to a deferred tax liability of Rs 9.93 crore in the same quarter of the previous year.

Otherwise, the fourth quarter performance is generally the same as the whole year's. Profit before tax in the last quarter of 2002-03 was Rs 14.89 crore, 37 per cent down from Rs 23.62 crore in the same period the previous year. Turnover declined to Rs 292.85 crore from Rs 331.60 crore in the fourth quarter of the previous year — a fall of 11.6 per cent.

Article E-Mail :: Comment :: Syndication

Stories in this Section
EID Parry net drops 23 pc on drought, fertiliser policy

Low sugar prices take toll on Balrampur — Net down 38 pc

Rain Calcining wipes out accumulated losses

Canara Bank net rises to Rs 1,019 cr