State-owned Rashtriya Chemicals and Fertilisers Ltd (RCFL) today reported over 38 per cent fall in net profit at Rs 47.94 crore in the second quarter of 2015-16 on account of higher expenses.
Its net profit stood at Rs 77.53 crore in the same quarter last year, the company said in a regulatory filing.
Net sales increased to Rs 2,556.48 crore in the July- September quarter of 2015-16, from Rs 2,204.77 crore in the year-ago period.
But the company's expenses increased to Rs 2,476.61 crore from Rs 2,050.32 crore in the said period.
In a regulatory filing, the company said consequent to gas pooling being made applicable to the urea sector with effect from June 1, 2015, it is expected that a differential pricing of gas may be made applicable for non-urea usage.
"The company has represented to the Department of Fertilisers for maintaining supply of domestic gas for P&K fertilisers and chemicals. However on a conservative basis, a provision of Rs 82.56 crore has been made during the quarter towards gas used in non-urea operations at pooled price differentiated with effect from June 1, 2015," it said.
RCFL has entered into a joint venture agreement with Coal India Ltd, Gail India and Fertiliser Corporation of India for incorporation of a company 'Rashtriya Coal Gas Fertliser Ltd' to set up a Ammonia Urea Complex at Talcher, Odisha based on coal gasification technology, it added.
