Coromandel Fertilisers Limited Total Income at Rs.2084.22 crores, recommends 100% dividend

Coromandel Fertilisers Limited (CFL) has turned out yet another year of good performance. The Company achieved new records both in terms of production and sale of Complex Fertilisers with the turnover crossing Rs.2000 crore mark.

The Board of Directors of Coromandel Fertilisers Limited approved the audited financial results for the year ended March 31, 2007. During the year the company achieved a total income of Rs.2084.22 crore (Previous year: Rs.1874.71 crore) registering a growth of about 11 per cent over previous year. The profit before depreciation, interest and taxes for the year is Rs.218.12 crore reflecting an increase of 24 per cent over previous year (Rs.176.45 crore).

The Profit Before Tax has gone up to Rs.146.35 crore in 2006-07 compared to Rs. 115.36 crore in 2005-06, a rise of over 27 per cent. The profit after tax for the year is Rs.100.74 crore registering a growth of 20.57 per cent over last year (Previous year Rs.83.55 crore).

The improved performance has been mainly due to higher production/sales volume, improved operational efficiencies especially on the energy front, reduction in conversion/distribution costs. The financing cost has been higher mainly due to delay in settlement of subsidy dues by Government of India, which lead to an increase in Working Capital borrowings.

The Hon'ble High Courts of Andhra Pradesh and Bombay sanctioned the Scheme of Amalgamation of Ficom Organics Limited (Ficom) and its wholly owned subsidiary Company Rasilah Investments Ltd. (Rasilah) with the Company. The certified copies of the Orders of the Hon'ble High Courts, when obtained, would be filed with the Registrar of Companies of Andhra Pradesh and Maharashtra to complete the process of Amalgamation of Ficom and Rasilah with the Company.

The Company had acquired 8001000, representing 25 per cent equity capital of M/s. Godavari Fertilisers And Chemicals Limited (GFCL) from Indian Farmers Fertiliser Cooperative Ltd. and also acquired 1551960 equity shares of GFCL, representing 4.85 per cent of the equity capital of GFCL from the shareholders through an open offer pursuant to the provisions of SEBI (Substantial Acquisition of Shares & Takeovers) Regulations, 1997. With these acquisitions, the Company's holding in GFCL has increased to 74.92 per cent and GFCL had become subsidiary of CFL.

During the year, the Company has also invested in Tunisian Indian Fertilisers S.A, towards 15 per cent equity stake in a joint venture formed for putting up a Phosphoric Acid Plant at Tunisia.

The Board of Directors recommended payment of dividend of 100 per cent as against 85 per cent paid last year.

Source : Equity Bulls

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