Tamilnadu Petroproducts posts net loss of Rs 30 cr

Firm had a profit of 0.58 cr in the year-ago quarter; total income down 17%

Tamilnadu Petroproducts Ltd has posted a net loss of Rs 29.75 crore for the quarter ended March 31, 2015, as compared to a net profit of Rs 0.58 crore registered during the same period of previous fiscal year. The total income from operations stood at Rs 233.16 crore during the quarter, down 17 per cent from Rs 281.03 crore during the corresponding quarter of previous fiscal year.

The company has said that it has received environmental clearance by the Ministry of Environment and Forests and Climate Change on May 15, 2015, to utilise its Epichlorohydrin plant for manufacturing raw materials for one of its associate company. The company has suspended operations of the plant from April 2013, owing to continuous losses due to lower price realisation from cheaper imports and lower demand for the product. An associate company has shown interest in utilising the facility and a detailed engineering study in this regard is in progress, it said.

Production of the alternate product is expected to be commenced in 18 months after obtaining the necessary clearances and based on the estimated future revenues from the the plant, the management is of the view that the recoverable value of the plant will be higher than the carrying value of Rs 12.24 crore, it said.