Earnings Review
FACT's Oct-Dec PAT slumps 73% despite drop in expenses
This story was originally published at 16:21 IST on 14 February 2025
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--FACT Oct-Dec petrochemical revenue INR 400,000 vs INR 1.20 bln year ago
--FACT Oct-Dec fertiliser revenue INR 9.48 bln vs INR 9.79 bln year ago
--FACT Apr-Dec revenue INR 29.98 bln vs INR 39.93 bln year ago
--FACT Apr-Dec net loss INR 294.9 mln vs INR 2.07 bln net profit year ago
--FACT Oct-Dec revenue INR 9.49 bln vs INR 10.97 bln year ago
--FACT Oct-Dec net profit INR 80.0 mln vs INR 303.2 mln year ago
By Gopika Balasubramanium
MUMBAI – Despite a significant on-year fall in expenses, the net profit of Fertilisers and Chemicals Travancore Ltd. nosedived in the December quarter. This was due to a sharp fall in the state-owned player's revenue from its fertiliser and petrochemical segments.
For the December quarter, the company's net profit for the period was merely INR 80 million, down a whopping 73% from INR 303.2 million a year ago. Revenue from operations for the quarter was down 13.5% at INR 9.49 billion. Sequentially, this means a 28?ll in the bottom line and a nearly 35?ll in the top line.
The nine-month performance of the company also did not paint a colourful picture. It reported a net loss of INR 294.9 million for Apr-Dec, as against a net profit of INR 2.07 billion a year ago. Revenue decreased 25% on year to INR 29.98 billion from INR 39.93 billion year ago
FACT's total expenses for the December quarter fell 11.5% on year to INR 9.92 billion. The cost of raw materials consumed, which accounts for 53% of the company's total expenses, declined on year to INR 5.24 billion. On the other hand, the company's stock-in-trade purchases nearly doubled to INR 1.87 billion from INR 953.4 million a year ago. The company's depreciation and amortisation expenses for the quarter rose to INR 120.5 million from INR 52.5 million a year ago.
The company's expenses incurred due to a change in inventories in Oct-Dec contracted to INR 531 billion from INR 1.36 billion a year ago. Other expenses fell 33% on year to INR 1.87 billion in the quarter.
Other income rose to INR 570.1 million from INR 541.3 million in the year-ago period.
The company's revenue from its fertiliser segment for the December quarter was INR 9.48 billion, down from INR 9.79 billion a year ago. This revenue declined sequentially as well, by INR 5 billion. The profit before tax and finance cost from this segment plunged to INR 342.5 million from INR 991.8 million a year ago. For the nine months ended December, the company's revenue from the fertiliser segment was down over 17%, while the profit before tax and finance costs from the segment plummeted 90%.
Revenue from its petrochemical segment for the December quarter was a paltry INR 400,000, sharply lower than INR 1.20 billion a year ago. The segment's loss before tax and finance cost for the quarter contracted to INR 147.8 million from INR 612 million a year ago. For the nine months ended December, the company's revenue from the fertiliser segment was down over 95%, while the loss before tax and finance costs from the segment shrunk to INR 433.1 million from INR 1.60 billion.
On the company's petrochemical joint venture with Rashtriya Chemicals & Fertlisers, namely, FACT – RCF Building Products Ltd., it had said Dec. 4 that it had fully provided for the value of its investments in the joint venture in its books in the previous quarter. FACT also had said that since the share of the company's losses in the joint venture exceeded the value of its investments, it would not recognise the share of loss in the joint venture in its statements.
Shares of the company closed 6.4% lower at INR 754.5 on the National Stock Exchange Friday. The stock ended down for the seventh consecutive session. End
Edited by Avishek Dutta
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