MCF reports Rs 29 crore net loss in Q3

The loss was on account of shutdown of urea operations and mark to market forex provisions during the quarter

UB Group firm Mangalore Chemicals and Fertilisers (MCF) has reported a net loss of Rs 29 crore for the third quarter ended December 2014 as against a net profit of Rs 28 crore in the corresponding quarter. The loss was mainly on account of shutdown of its urea operation at Mangaluru and mark to market forex provisions during the quarter.

The net sales of the company has declined 66% to Rs 284 crore during the quarter as against Rs 840 crore reported in the year ago quarter. The company also reported an operating loss of Rs 30 crore during the December quarter as against an operating profit of Rs 68 crore in the year ago quarter.

"The urea concession for the period has been estimated and accounted as per the Modified New Pricing Scheme (NPS)-III notified on April 2, 2014. As per this notification, naphtha based urea units will continue under Modified NPS-III till gas availability and connectivity is provided or June 2014 whichever is earlier. However, was extended till September 30, 2014. Consequently, production of urea stopped from October 1, 2014 and the production was restarted from January 7, 2015, as per the government of India notification for an initial period of 100 days," the company said in a statement to BSE.