Decline in sales and spurt in raw material prices pulled down the standalone net profit of fertiliser major Coromandel International by 11.5 per cent during the quarter ended March 31, 2011.

The company, part of the $3.03-billion Murugappa Group, posted a net profit of Rs 72.62 crore during the quarter, down from Rs 82.07 crore in the year-ago period.

Its standalone net sales were also down 14 per cent to touch Rs 1,174.75 crore (Rs 1,364.77 crore) during the quarter.

Raw material consumption touched Rs 982.43 crore (Rs 683 crore).

“In terms of operational and financial performance, the fourth quarter was moderate due to the advance of annual shutdown into the quarter. Phosphoric acid supply disruption also effected the production during the quarter. However, supply from Tunisia is expected to restart during the April to June quarter,” the company said in a statement.

Final dividend

The board of the company has recommended a final dividend of Rs 3 per equity share. With the interim dividend of Rs 4 already paid, the total dividend for the year was Rs 7 per share on the face value of Re 1 per share.

However, the fiscal as a whole was better for the company, with net profit and sales being higher over the previous fiscal.

Its standalone net profit and sales during 2010-11 were Rs 694.46 crore (Rs 468.20 crore in the previous year) and Rs 7527.95 crore (Rs 6394.73 crore), up by 48 per cent and 18 per cent respectively.

Mr Kapil Mehan, Managing Director of the company, said: “This was a satisfying year. We believe the new subsidy regime will encourage new and innovative product introductions under the nutrient-based subsidy scheme.”

Related Topics
comment COMMENT NOW