Fertilisers and Chemicals Travancore (FACT) Q4 04/05 earnings summary

Executive summary

• Turnover rose 24% YoY to Rs 1,214.69 crore, while the net loss widened slightly to Rs 167.96 crore from Rs 167.22 crore.

• Negative net worth of Rs 177.46 crore and constrained working capital continued to pressure operations; a government relief package was under consideration.

Financial highlights

• Net sales were Rs 980.55 crore and fertiliser subsidies/concessions Rs 197.12 crore; total income was Rs 1,211.96 crore.

• Operating loss was Rs 132.96 crore; loss before tax was Rs 167.76 crore and net loss Rs 167.96 crore, versus Rs 167.22 crore net loss in FY04.

• EPS was -Rs 4.73; accumulated deficit reached Rs 506.28 crore, compared with Rs 305.61 crore a year earlier.

• Caprolactam exports increased to 13,311 tonnes from 7,038 tonnes; foreign exchange earnings rose to Rs 128.39 crore from Rs 38.37 crore.

Outlook and guidance

• Revival proposals cleared by the Department of Fertilisers were under BRPSE consideration; approval was expected to improve the balance sheet and restore positive net worth.

• A Rs 200 crore additional working-capital loan was sought; plans included long-term imported feedstock supply and critical maintenance to support capacity use.

• A stated FY2010 objective was Rs 200 crore annual net profit on Rs 2,100 crore turnover; this was a strategic target, not near-term guidance.

• Proposed projects included new sulphuric acid and urea plants, phosphoric-acid capacity expansion, gypsum-based products and caprolactam downstream integration.