Fertiliser company Coromandel Fertilisers Limited (CFL) has logged a turnover
of Rs2,084 crore and a net profit of Rs100.74 crore against Rs1,874.71 crore and
Rs83.55 crore respectively for 2005-06, crossing two landmarks during fiscal 2006-07.
the company, the improved performance has been mainly due to higher production/sales
volume, improved operational efficiencies, especially on the energy front, reduction
in conversion/distribution costs. The financing cost has been higher mainly due
to delay in settlement of subsidy dues by the Government of India, which led to
an increase in working capital borrowings.
the year under review the high courts of Andhra Pradesh and Bombay sanctioned
the scheme of amalgamation of Ficom Organics Limited (Ficom) and its wholly owned
subsidiary, Rasilah Investments Ltd. (Rasilah), with CFL.
may be recalled that CFL, part of the Murugappa group, had also acquired 8,001,000
shares representing 25 per cent equity capital of Godavari Fertilisers and Chemicals
Limited (GFCL) from Indian Farmers Fertiliser Cooperative Ltd. and also acquired
1,551,960 equity shares of GFCL, representing 4.85 per cent of the equity capital
of GFCL, from the shareholders through an open offer pursuant to the provisions
of SEBI (Substantial Acquisition of Shares & Takeovers) Regulations, 1997.
With these acquisitions, CFL''s holding in GFCL has increased to 74.92 per cent
and GFCL had become subsidiary of CFL.
the year, CFL has also invested towards 15 per cent equity
stake in Tunisian Indian Fertilisers S.A, a joint venture formed for putting up
a phosphoric acid plant in Tunisia.
board of directors recommended payment of dividend of 100 per cent as against
85 per cent paid last year.