IFFCO profit before tax up 9% in FY13
Fertiliser major IFFCO reported 9% increase in its profit today, before tax to Rs 1,107 crore in fiscal 2012-13 despite fall in sales of nutrients because of bad monsoon in some parts of the country.business Updated: May 05, 2013 10:56 IST
Fertiliser major IFFCO reported 9% increase in its profit on Sunday, before tax to Rs 1,107 crore in fiscal 2012-13 despite fall in sales of nutrients because of bad monsoon in some parts of the country.
The company's profit before tax stood at Rs 1,017.78 crore in the previous fiscal.
Its turnover fell by 15.3% to Rs 21,673 crore in 2012-13 from Rs 25,599 crore in the previous fiscal.
"IFFCO has achieved robust growth with its highest ever profit before tax at Rs 1,107 crore," the co-operative said in a statement.
Commenting on the results, IFFCO managing director US Awasthi said: "Our profit before tax has increased because of growth in our insurance and communication businesses in India and higher profits from foreign joint ventures." The profit from fertiliser business in India has been almost constant, he added.
Asked about drop in turnover, Awasthi said: "In turnover figure, we only include fertiliser business in India. We do not add revenues from overseas investment and non-fertiliser business in India".
The fertiliser business in India suffered because of bad monsoon resulting into lower fertiliser production and sales in fiscal 2012-13 compared to previous year, he added.
IFFCO has five manufacturing plants in the country. The co-operative has diversified into general insurance and communication business through joint venture firms IFFCO-Tokio General Insurance Ltd and IFFCO Kisan Sanchar Ltd.
That apart, IFFCO has made strategic investments in many foreign joint ventures like Industries Chimiques du Senegal in Senegal, Oman India Fertiliser Company (OMIFCO) in Oman and Jordan India Fertiliser Company (JIFCO). It has stake in Canada-based Americas Petro Gas as well.
Fertiliser production dropped to 79 lakh tonnes in 2012-13 from 84.42 lakh tonnes in the previous year, while sales declined to 100 lakh tonnes from 121.84 lakh tonnes.
IFFCO said it would pay maximum permissible dividend of 20% to its nearly 40,000 member cooperative societies.