Fertilisers and Chemicals Travancore (FACT) Q4 01/02 earnings summary

Executive summary

• FY2001-02 net profit was Rs. 57.36 lakh, versus a Rs. 151.95 crore loss in FY2000-01; the result included Rs. 226.88 crore of Government interest relief on the OECF loan.

• Boiler failure halted Cochin ammonia and urea production; caprolactam prices and complex-fertiliser selling prices also pressured performance.

• No dividend was recommended due to insufficient profit.

Financial highlights

• Total income was Rs. 1,389.42 crore versus Rs. 1,784.57 crore; sales after discounts were Rs. 946.82 crore and subsidy income Rs. 230.55 crore.

• Profit before tax was Rs. 63.36 lakh and profit after tax Rs. 57.36 lakh; FY2000-01 loss after tax was Rs. 151.95 crore.

• Interest expense fell to Rs. 38.92 crore from Rs. 98.78 crore; depreciation was Rs. 66.83 crore versus Rs. 96.50 crore.

• Fertiliser sales were 12.26 lakh tonnes versus 14.80 lakh tonnes; caprolactam sales were 45,178 tonnes versus 52,910 tonnes.

Outlook and guidance

• Cochin ammonia and urea plants were expected to restart in October 2002 following delivery of a replacement RG boiler ordered from L&T.

• Domestic caprolactam prices were expected to improve in Q2 FY2002-03; international prices were expected to improve marginally from US$1,040 C&F.

• Plans included pursuing lower-interest loan swaps, capacity utilisation, cost control, plant revamps and proposed projects including a Cochin sulphuric-acid plant and LNG feedstock conversion.