Mangalore Chemicals and Fertilizers (MCF), a UB Group company, on Friday reported a net loss of Rs 5.78 crore for the fourth quarter ended March 2016 compared to a net profit of Rs 34 crore in the corresponding quarter last year.
The net sales for the quarter went up 13% to Rs 752 crore as against Rs 666 crore a year ago.
MCF is the lead manufacturer of fertilisers for Karnataka. It produces urea, DAP among others at its plant in Mangaluru. The net loss is on account of provision for potential diminution in the value of investments in Bangalore Beverages Limited. The company has provided R16.68 crore towards the recoverable amount from United Breweries (Holdings).
The company’s results during the quarter were also affected by the drought condition in the company’s major operating territory and urea policy of the government. The company is contesting the “discriminatory” conditions of the notifications before the High Court of Delhi, the company said in a statement.
Overall, for the full year ended March 2016, the company has provided Rs 200 crore towards the potential diminution in the value of investments in Bangalore Beverages.