Spic Net Falls To Rs 72.62 Crore

For the year to March 1997, fertiliser major Southern Petrochemical Industries Corporation (Spic) has recorded a drop in net profit to Rs 72.62 crore, from Rs 81.11 crore earned last year. Turnover has decreased from Rs 1,842.88 crore last year to Rs 1,832.18 crore in 1996-97.

Spic vice-chairman and president A C Muthiah attributed the decline in profits and turnover to the drastic drop in urea handled by the company.

But with the company managing to cut down on expenses to Rs 1,610.13 crore (Rs 1,631.92 crore), there has been a rise in operating profit to Rs 222.05 crore (Rs 210.96 crore).

After providing Rs 97.55 crore (Rs 93.76 crore) as interest and Rs 47.28 crore (Rs 36.09 crore) as depreciation, profit before tax is Rs 77.22 crore (Rs 81.11 crore). Besides, it provided Rs 4.6 crore for tax.

The companys board has recommended a dividend of Rs 3 per share and has approved an increase in the company's share capital from Rs 230 crore to Rs 300 crore by issuing preference shares. Accordingly, Spic will issue 70,000 shares of Rs 100 each, amounting to Rs 70 crore, and place them privately with banks, financial institutions or other investors.

Meanwhile, the company will invest Rs 1,200 crore in new ammonia and urea facilities in Tuticorin.

Current indications are that it will set up a 6 lakh tonne ammonia plant and 4 lakh tonne urea plant.