MCF reduces net loss to Rs 9.76 crore in Q1

Vijay Mallya-controlled Mangalore Chemicals and Fertilizers Limited (MCF) today announced that its net loss has come down to Rs 9.76 crore for the first quarter ended June 30, 2014 compared to a net loss of Rs 12.04 crore in the corresponding quarter last fiscal.

MCF is the lead manufacturer of fertilisers in Karnataka. It also sells in the neighbouring markets.

The income from operations has decreased 29% to Rs 431 crore for the quarter as against Rs 607 crore in the same quarter last year. The operating profit, however, gone up 49.7% to Rs 2.53 crore as against Rs 1.69 crore in the year ago quarter.

The loss during the quarter was mainly on account of higher finance costs due to term loans borrowed for the gas conversion project and delayed payment of fertiliser subsidy by the government. The turnover came down due to shutdown of ammonia / urea plant for annual turnaround and to complete modifications to the existing plant to use natural gas as feed stock besides naphtha.

The urea concession has been estimated and accounted as per the modified New Pricing Scheme (NPS)-III for existing urea units notified on April 2, 2014 for a period of one year, the company said in a filing to BSE.

It has also accounted phosphates and complex fertiliser subsidy based on rates announced by the government under Nutrient-based subsidy policy.

MCF shares closed at Rs 72.15 per share on Bombay Stock Exchange, registering a loss of 0.41% compared to the previous closing.