The Hindu Business Line : Kanoria Chemical Q1 net down by 44%

MUMBAI: Chemical intermediaries manufacturer Kanoria Chemicals on Thursday reported a net profit of Rs 5.68 crore in the quarter ended on June 30, 2008, a decline of over 44 per cent compared to the same period, an year ago.

The company reported a net profit of Rs 10.27 crore in the quarter ended June 30, 2007, Kanoria Chemical (KCL) said in a statement.

In terms of the total income, the company has registered an increase of around 19.4 per cent at Rs 128.18 crore in the first quarter of the current fiscal compared to Rs 107.33 crore in the same quarter last fiscal, KCL said.

Pursuant to the need of the Accounting Standard 11, the company is required to account for gain or loss arising from changes in foreign exchange rates.

“Accordingly, the company made a provision for uncrystallised loss of Rs 6.24 crore during the quarter, against unrealised gain of Rs 6.74 crore in the corresponding quarter of the previous year on various FCCBs related transactions,” KCL Chief Financial Officer, Mr NK Nolkha said.

The adjustment has resulted in decline in the net profit but in actual terms we had an increase in profits, he added.

KCI has two manufacturing facilities, one at Renukoot in Uttar Pradesh which manufactures caustic soda, chlorine and chlorine derivatives, and another at Ankleshwar in Gujarat which manufactures Alcohol based intermediates. - PTI

Prev: Gujarat Alkalies ventures with Dow Chemicals
Next: Govt mulls export ban on sulphuric, phosphoric acid

Business Line | NUS Index |