CHENNAI: Godavari Fertilisers Ltd has reported a net profit of Rs 17.09 crore for 2004-05 against Rs 7.15 crore for the previous year, an increase of 140 per cent.
During the year, the company achieved a turnover of Rs 1,200.05 crore (Rs 897.08 crore), registering a growth of 34 per cent. Earnings per share rose 138 per cent to Rs 5.34 per share against Rs 2.24 in the previous year.
The board has recommended a dividend of Rs 1 per share (10 per cent) after four years of nil dividend. "The company faced several challenges in relation to under-recovery of costs incurred on account of raw materials, freight, energy, packaging and statutory levies. This is due to the policy of the Government in not providing adequate concessions to compensate the increase in costs," says a company release.
Despite the challenges, the company improved its performance by achieving higher production and sales, a better product mix and tough credit control measures. Production increased by 10 per cent to 888,447 tonnes, in spite of intermittent stoppages.