United Phosphorus today reported a whopping 86 per cent dip in its net profit at Rs 7.3 crore for the first quarter ended June 30, 2010, due to loss on account of exchange differences.
The company had reported Rs 52.11 crore net profit in the corresponding quarter last fiscal.
"During the quarter, interest and other finance charges includes net exchange loss of Rs 71.35 crore arising on foreign currency loans/advances and related derivatives," the company said in a communique to the stock exchange.
United Phosphorus had issued a $150 million foreign currency convertible bonds (FCCBs) in 2006. Out of the issue, FCCBs aggregating to $85.1 million have been converted into equity shares upto June 30, 2010.
The company clocked Rs 694.19 crore of net income during the quarter under review, compared to Rs 676.34 crore in the same quarter ended June 2009.