Hind Lever Chem Q1 Net Dips 93% To Rs 29 Lakh

Mumbai, July 30: | Updated: Jul 31 2003, 05:30am hrs
Hind Lever Chemicals Ltd (HLCL) reported a 93 per cent decline in net profit to Rs 29 lakh for the first quarter ended June 30, 2003 as against Rs 4.19 crore during the corresponding period previous fiscal. Net sales of the company has decreased from Rs 152.13 crore to Rs 116.34 crore during the quarter under review.

The sales volume of the fertiliser business during the quarter was lower mainly due to the temporary suspension of sales in Bihar markets. Sales were suspended since October 2002, following the Centres decision to withdraw on-account payment of price concession for sales made in Bihar, the company release stated.

The main season for sale of fertilisers is the latter periods of the year. The current quarters results, therefore, are not representative of the full year.

Furthermore, fertiliser sales are being aligned more towards the consumption pattern following the agricultural season which will also help in improving price realisation. Significant sums of money are overdue from the government towards balance subsidy amounts payable to the company, which are pending owing to non-certification of sales by Bihar since October 1998.

Following a writ petition filed in the Delhi High Court, an order has been passed directing the Bihar State to complete the certification within 45 days. Meanwhile, the state has also approved the certification process to be followed. In the light of these developments, it is hoped that the past period certification will be completed as directed and the company will be able to resume sales in Bihar State in the near future.

The STPP business continues to make good contribution to the companys operation. STPP volumes during the quarter grew by 14 per cent, as compared to the previous year.

Since the final rates of price concession for Phosphatic and Potassic Fertilisers for June quarter 2003 are yet to be announced, the above results are based on current methodology used in computing price concessions taking into account changes in prices of key inputs like phosphoric acid and ammonia and in the rupee-dollar exchange rate.

The shareholders and secured creditors of the company have approved the scheme of amalgamation of the company with Tata Chemicals Ltd at the court-convened meeting held on 11th July 2003.