FACT reports Rs 41 crore loss

Kochi-based Ferilizers and Chemicals Travancore (FACT) has registered a net loss of Rs 41.32 crore in 2010-11 financial year. 

The company said the loss was mainly due to an additional provision for Rs 68 crore towards enhanced gratuity limit and Rs 17 crore loss made on sale of fertiliser bonds. If the loss on sale of bonds is reimbursed by the government and if additional compensation for increase in naphtha prices is approved and subsidy on ammonium sulphate is recoginised, there will be substantial difference in this financial figures, the company said in a statement.

Huge increase in cost of raw materials, coupled with low production levels due to shortage of phosphoric acid affected the financial performance last year. The price of naphtha has been increasing and the additional compensation notified by department of fertilizer for use of naphtha was found inadequate as it was based on naphtha prices of October 2010.

Since then naphtha price increased by Rs 13,260 per tonne as of March 31. This would have an additional impact of Rs 2,650 per tonne on Factamfos and Rs 2,600 per tonne on ammonium sulphate. Total sales turnover in 2010-11 was Rs 2,527 crore as against Rs 2,150 crore in the previous year.

Sale of Caprolactam increased to 44,136 tonnes compared to 38,253 tonnes during 2009-10. Sale of Gypsum rose to an all-time high of 4.75 lakh tonnes.

Total fertiliser production is 8.44 lakh tonnes as against 9.32 lakh tonnes of the previous year. Production of Factamfos, at 643,000 tonnes, could not come up to expectation due to shortage of raw materials, but that of Ammonium Sulphate was considered good at 200,000 tonnes.

Udyogamandal complex of the company has been adjudged the winner of outstanding safety performance award in the category of large-size chemical industries by the National Safety Council (Kerala chapter) and petrochemical division has been adjudged third among large industries in the safety award instituted by Directorate of Factories and Boilers, Kerala.

The company has achieved a new record in the production and sale of bio-fertiliser with sales touching 74.89 tonnes during the year surpassing the previous best of 56.39 tonnes in the previous year.