Chennai, Oct 25: Full capacity utilisation, benefits from cost advantage from raw material supplies and the support extended by the financial institutions in loan rescheduling and interest rate reduction has helped Madras Fertilizers Ltd (MFL) to register a profit of Rs 37.45 crore during the quarter to September 30, 1999.This has helped the company to bring down its losses to Rs 6.84 crore during its extended 18-month period operation as against Rs 36 crore incurred for the 12-month period up to March 1999.
The company's accumulated loss now stands at Rs 62.19 crore. Together with the 1997-98 loss of Rs 55.35 crore the accumulated loss up to March 31, 1999 was Rs 91.35 crore.
The financial restructuring proposal involved the writing off of the accumulated losses of the company against loans. The financial institutions, IDBI, ICICI, and IFCI had permitted a rescheduling of loan worth Rs 93 crore and interest reduction from 17 per cent to eight per cent, giving MFL a relief of about Rs 10 crore. These benefit is reckoned in the current result.
Net sales and income from operation of MFL during the 18-month period are Rs 1753.84 crore. The other income has supplied Rs 628.63 crore. Total expenditure was Rs 1519.09 crore and interest Rs 186.78 crore. Gross profit for the period is Rs 54.26 crore. Depreciation accounted for Rs 61.10 crore. The net loss is Rs 6.84 crore.
MFL chairman and managing director, NY Mahajan, said the company has entered into agreement with Monsanto for rectifying the problems in the pril tower of the urea plant. The MoU for the Rs 7-crore project was signed in June. Nearly 144 employees have opted for VRS offered by the company.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.