Coromandel Fertilisers logs 100 crore net

Our Corporate Bureau
04 May 2007

Chennai: Fertiliser company Coromandel Fertilisers Limited (CFL) has logged a turnover of Rs 2,084 crore and a net profit of Rs 100.74 crore against Rs 1,874.71 crore and Rs 83.55 crore respectively for 2005-06, crossing two landmarks during fiscal 2006-07.

According to 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.

During 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.

It 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 regulations, 1997. With these acquisitions, CFL's holding in GFCL increased to 74.92 per cent and GFCL became a subsidiary of CFL.

During 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.