Fertilisers and Chemicals Travancore (FACT) Q4 96/97 earnings summary

Executive summary

• Turnover was Rs. 108,050 lakh and profit before tax Rs. 7,115 lakh in FY1996-97, down from Rs. 120,995 lakh and Rs. 8,554 lakh, respectively, in FY1995-96.

• Production and sales were constrained by severe power cuts, higher fuel and raw-material costs, and limited product availability; a 5% dividend of Re. 0.50 per share was recommended, matching the prior year.

Financial highlights

• Total income was Rs. 106,435.13 lakh versus Rs. 120,281.43 lakh; sales of own products net of excise duty were Rs. 92,564.17 lakh versus Rs. 107,994.92 lakh.

• Operating profit was Rs. 7,100.54 lakh versus Rs. 8,467.41 lakh; PAT was Rs. 6,178.27 lakh versus Rs. 7,675.84 lakh.

• Interest expense declined to Rs. 1,354.71 lakh from Rs. 2,358.53 lakh; depreciation was Rs. 2,855.81 lakh versus Rs. 2,741.93 lakh.

Outlook and guidance

• Commercial production from the 900 TPD Udyogamandal ammonia project, estimated at Rs. 642 crore, was targeted for November 1997.

• A 900 TPD Cochin sulphuric acid plant, estimated at Rs. 96 crore, was expected to take 25 months; environmental clearance had been received.

• Two proposed 16 MW captive power plants were estimated to cost Rs. 82 crore; project reports were in preparation, with work expected to start thereafter.

• Cochin complex-fertiliser capacity was proposed to rise by ~140,000 tonnes p.a. through pipe-reactor retrofits; a Cochin urea revamp costing Rs. 18 crore was expected to add 62 TPD.