Paradeep Phosphates FY'13 PBT down 49.2% at Rs 131.74 cr

Fertiliser major Paradeep Phosphates Ltd (PPL) has reported a fall of 49.2 per cent to Rs 131.74 crore in its profit before tax in 2012-13 due to rise in interest costs following delay in subsidy payment, decreased realisation and glut in market.

"With a turnover of Rs 5,272.6 crore in 2012-13, PPL made Rs 131.74 crore profit before tax (PBT) as compared to Rs 259.26 crore PBT in 2011-12, showing 49.2 per cent decrease," PPL Managing Director S S Nandurdikar told reporters here.

Similarly, PPL's profit after tax (PAT) dropped to Rs 103.59 crore in 2012-13 compared to Rs 177.71 crore during the previous year, recording 41.7 per cent decline, he said.

Main reasons for the drop were rise in interest costs due to delay in payment of subsidy by government, decreased realisation and glut in the market, Nandurdikar said adding the year 2012-13 has been the most difficult time ever for the Phosphatic fertiliser industry in more than a decade.

A deficient and delayed monsoon, high differential in retail price of Urea and DAP due to "skewed government policy" contributed to contraction of phosphatic fertiliser demand by almost 35 per cent, Nandurdikar said.

Despite adverse conditions, problems in raw materials availability and glut in the market, PPL produced a total of 9.42 lakh tonnes (LT) of fertilisers comprising 3.1 LT of DAP and 6.32 LT of complexes of NPK last fiscal, he said.

Among intermediary products, Sulphuric Acid and Phosphoric Acid production was 6.1 LT and 2.1 LT, resepctively, Nandurdikar said.

Turning to sales, he said PPL sold 8.57 LT of its own manufactured DAP and complexes and 4.3 LT of gypsum during 2012-13, while a whopping five million tonnes of nutrients remained unsold as on March 31, 2013.

Undeterred by difficult conditions, PPL complex at Paradip is abuzz with project activities for the Rs 600 crore sulphuric acid plant with 2,000 MT capacity per day which is due for commissioning by July, 2014, Nandurdikar.

He said the phospho-gypsum based Zypmite project has already been commissioned.