Mangalore Chem reports net loss of Rs 12 crore in Q1

Vijay Mallya-controlled Mangalore Chemicals and Fertilizers (MCF) today announced that its net loss has come down to Rs 12.04 crore for the first quarter ended June 30, 2013 compared to Rs 12.49 crore in the corresponding quarter of last fiscal.

The company, which is facing an intense takeover battle by two other fertilizer companies, reported a marginal rise of 1.5% in net sales at Rs 607 crore for the period compared to Rs 598 crore in the year ago period.

However, the company reported an operating profit of Rs 1.69 crore for the first quarter as against an operating loss of Rs 9.70 crore in the June quarter of 2012. The net profit took a hit due to an interest outgo of Rs 21 crore during the quarter.

"Above normal rainfall in the current season has increased demand forecast for fertilisers. However, continued depreciation of rupee can adversely affect profitability," the company said in a filing to NSE.

The concession for urea for three months has been estimated and accounted as per the pricing policy parameters applicable to Stage-III of the New Pricing Scheme, which has been extended from April 1, 2010 on provisional basis until further orders, the company said.

Phosphates and complex fertilisers subsidy has been accounted based on rates announced by the government of India under Nutrient-based subsidy policy, it added.

In the last one month, the company has witnessed a takeover battle between Saroj Poddar's Zuari Fertilisers and Pune-based Deepak Fertilisers, which have been buying stake in MCF through open market.

Vijay Mallya's UB Group's stake has come down to 21%, after its lenders sold pledged MCF shares in the market to recover loans granted to his other group companies.