SPIC slips into the red

Southern Petrochemical Industries Corporation (SPIC) recorded a net profit of Rs 9.74 crore for the fiscal ended March 31, 2005, as compared to a net loss of Rs 9.41 crore in the previous fiscal.

The company, however, reported a net loss of Rs 87.75 crore in the fourth quarter of 2004-05 as compared to a net profit of 114.96 crore in the corresponding period of the previous fiscal.

The sales in the fourth quarter of 2004-05 stood at Rs 420.61 crore, up by 11.48 per cent in relation to the previous year's sales of Rs 377.29 crore.

Sales for the 2004-05 fiscal was Rs 1,900.52 crore, higher by 27.64 per cent in relation to the previous year's sales of Rs 1,488.89 crore.

The company announced a net gain of Rs 212.54 crore in 2004-05 by restructuring its floating rate notes. The restructuring had a significant impact on its financial performance in 2004-05.

A SPIC release said that it sold 6.61 lakh tonnes of urea in 2004-05, its highest in the last five years. The company's diammonium phosphate (DAP) sales stood at 3.24 lakh tonne, a four-year high.

Last year, the operations of the fertiliser industry were affected by a marked increase in the cost of inputs such as naphtha. SPIC's raw material consumption stood at Rs 1,129.74 crore, up by 47 per cent as compared to the previous year's Rs 768.90 crore.

Among the other businesses of SPIC, the pharmaceutical division recorded a turnover of Rs 76.38 crore (Rs 89.51 crore), lower by 14.66 per cent. The engineering division's turnover was Rs 87 crore (Rs 59.83 crore), higher by 45.41 per cent.