Fertilisers and Chemicals Travancore (FACT) Q4 98/99 earnings summary

Executive summary

• Record phosphatic-fertiliser production and fertiliser sales were offset by a net loss of Rs 48.26 crore, versus net profit of Rs 53.94 crore in 1997-98; directors cited a cash profit of Rs 14 crore.

• High interest and depreciation, low utilisation of the new ammonia plant, and higher costs for major raw materials weighed on results.

Financial highlights

• Turnover was Rs 127,078 lakh in 1998-99 versus Rs 126,340 lakh in 1997-98.

• Total income was Rs 124,815.63 lakh; operating loss was Rs 5,436.55 lakh and loss after tax was Rs 4,825.98 lakh, versus profit after tax of Rs 5,394.38 lakh in 1997-98.

• Interest expense rose to Rs 8,266.88 lakh from Rs 1,527.51 lakh; depreciation rose to Rs 6,232.78 lakh from Rs 3,147.32 lakh.

• No dividend was proposed for 1998-99, compared with a proposed dividend of Rs 1,773.86 lakh in 1997-98.

Outlook and guidance

• Budgetary support of Rs 35 crore was expected in 1999-2000 for essential modernisation and revamping schemes.

• Planned works included Cochin Phase I distributed control systems, three Cochin thermal-plant boilers, critical urea-plant equipment, and Petrochemical Division control-system upgrades.

• A 150 TPA biofertiliser plant was expected to be ready by November 1999, partly funded by a Rs 20 lakh government grant.