Fertilisers and Chemicals Travancore (FACT) Q4 00/01 earnings summary

Executive summary

• FY2000-01 set records in turnover, production and fertiliser sales, but ended with a net loss of Rs.151.95 crore versus Rs.39.80 crore in FY1999-2000.

• Higher depreciation and interest weighed on results; depreciation included Rs.33.21 crore from capitalised machinery spares, including Rs.30.85 crore relating to prior periods.

Financial highlights

• Turnover reached Rs.1,845.06 crore; gross margin was Rs.43.43 crore versus Rs.99.90 crore in FY1999-2000.

• Net loss after tax was Rs.151.95 crore; depreciation was Rs.96.50 crore and interest Rs.98.78 crore, versus Rs.63.42 crore and Rs.76.46 crore, respectively, in the prior year.

• Sales were 14.80 lakh tonnes of fertilisers and 52,910 tonnes of caprolactam; foreign exchange earnings were US$14 million.

• Operating cash flow was negative Rs.17.94 crore; investing cash outflow was Rs.83.60 crore and financing inflow Rs.92.17 crore.

Outlook and guidance

• Caprolactam demand was expected to improve in FY2001-02 after a domestic-market slowdown in H2 FY2000-01 linked to the general recession.

• A pilot plant for slow-release fertilisers was under consideration for test marketing; research formulations were undergoing field tests with Tamil Nadu Agriculture University.

• A Government of India request to write off the new-ammonia-project loan and waive related interest remained under consideration.