Helped by 116 per cent jump in urea production, Indo Gulf Fertilisers and Chemicals Corporation, posted a 60 per cent rise in net profit for the first six months of 1997-98 to Rs 69 crore or Rs 7.38 per share.
Net sales rose to Rs 319.22 crore a 69.76 per cent rise. Other income fell slightly to Rs 20.73 crore from Rs 27.16 crore. Indo Gulf, the Aditya Birla group fertiliser major, had a bad year in 1996-97 when a three month stoppage at its urea plant in Jagdishpur, Uttar Pradesh, affected performance.
This year, however, the plant operated at around 120 per cent capacity and urea production touched 476,000 tonnes from 220,000 tonnes in 1996-97. The first half results include only the fertiliser division and not that of Birla Copper, majority of whose units are yet to be commissioned.
The Rs 1,850 crore, one lakh tonne, copper complex is set to be fully commissioned by March 1998. B N Puranmalka, managing director of Indo Gulf said in Mumbai yesterday that in fiscal 1999, the companys turnover could top Rs 1,400 crore.
Of this, Birla Coppers contribution, operating at 65 per cent would be around Rs 800 crore, he added.
Indo-Gulf paid slightly lower depreciation of Rs 19.5 crore against Rs 20 crore last year. Taxes were lower at Rs 8.11 crore from Rs 12.00 crore and like group company Indian Rayon, the company paid minimum alternate tax against normal tax of last year.
Meanwhile, Indo Gulf is planning yet another issue of non-convertible debentures of Rs 100 crore in the next fortnight. The NCDs will be redeemed in the sixth, seventh and eighth years. The money will be raised in two tranches.
Company joint executive president, finance, D D Jalan said Indo-Gulf had converted some of its rupee debt into foreign currency loans of $50 million. There was a plan to convert a major portion of its rupee debt of over Rs 450 crore into forex loans.
But the recent rate of rate cuts by financial institutions and banks has led to a new thinking and the company has shelved the plan.
Indo Gulf is planning an equity issue sometime middle of next year after its copper smelter gets commissioned. Puranmalka said they have not applied their minds to whether it will a domestic or global offering.
