Fertilisers and Chemicals Travancore (FACT) Q4 99/00 earnings summary

Executive summary

• FY00 production and sales reached record levels; turnover was Rs.1,628 crore, but the year ended with a Rs.39.80 crore net loss.

• Cash profit improved to Rs.23.62 crore from Rs.14.07 crore YoY; cost-saving efforts cut input costs by more than Rs.65 crore.

• Government relief through loan write-off and interest waiver was under consideration; management said approval could significantly improve financial health.

Financial highlights

• Total sales turnover reached Rs.1,628 crore, 28% above the prior-year record; fertiliser sales were 13.16 lakh MT vs. 12.10 lakh MT.

• Net loss was Rs.39.80 crore vs. Rs.48.26 crore in FY99, after depreciation of Rs.63.42 crore and interest of Rs.76.46 crore.

• P&L income was Rs.1,586.57 crore vs. Rs.1,248.16 crore; loss before and after tax was Rs.39.80 crore.

• Gross margin was Rs.100.08 crore vs. Rs.90.58 crore; operating cash flow was negative Rs.105.85 crore vs. positive Rs.1.29 crore.

Outlook and guidance

• Relief package request to the Government of India included a write-off of the new project loan and waiver of unpaid interest; decision remained pending.

• Long-term strategy targets globally competitive farm inputs, indigenous fertiliser technology and diversification into high-growth areas; a study was commissioned.

• Manpower rationalisation and restructuring were planned, with a study requested from the National Productivity Council, Bangalore.

• A pilot plant for slow-release fertilisers was being considered; the NYRIP process for caprolactam-based engineering plastics was in its final stage.