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Fertiliser major IFFCO may fix the profit target for the next financial year at Rs 800 crore, lower than Rs 1,000 crore set for this year, due to various reasons, including uncertainty on the subsidy front.
“Due to various factors, we are likely to scale down our profit target for the next financial year to Rs 800 crore, though the target this year is Rs 1,000 crore,” the IFFCO Managing Director, Mr U.S. Awasthi, told PTI in an interview here.
The cooperative fertiliser giant would also refrain from pumping fresh investments, launching new projects and undertaking major expansion activities, diversification and acquisition due to fluid economic situation, he added.
However, the profit targeted during the current fiscal would certainly be met, Mr Awasthi said, adding that IFFCO would also surpass the production target of 83 lakh tonnes of fertilisers by its five plants this year.
The turnover target of Rs 25,000 crore for 2011-12 would also be met by IFFCO, the fertiliser leader in the cooperative sector, he said after a visit to the IFFCO plant in Paradip.
Though production target is likely to be raised up to 85 lakh tonnes and turnover to Rs 26,000 crore for next fiscal, profit goal may have to be reduced due to several reasons including uncertainty over subsidy, he said.
Lamenting delay in formulation of a new comprehensive fertiliser policy, he said IFFCO is yet to get subsidies of Rs 12,000 crore which have been pending for a long time due to uncertainties in the absence of a clear policy.
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