IPCL Records Rs 39-crore Net Profit In First Quarter

Mumbai, July 29: | Updated: Jul 30 2003, 05:30am hrs
Indian Petrochemicals Corporation Ltd (IPCL), a Reliance group company, has posted a net profit of Rs 39 crore for the first quarter ended June 30, 2003 as against a net loss of Rs six crore in the corresponding period the previous year.

Gross turnover for the quarter reported a 47.75 per cent increase at Rs 2,633 crore as against Rs 1,782 crore for the same quarter the previous year. Other income saw an increase of 133.33 per cent at Rs 21 crore as compared to Rs nine crore for the corresponding period the previous year. Commenting on the results, Mukesh Ambani, chairman, IPCL, said: We are satisfied with IPCLs performance in a difficult operating environment which saw a drop in margins being partly compensated by growth in production and sales volumes.

The first quarter performance reflects the positive impact of measures introduced for cost reduction, productivity, savings in interest cost and efficiency gains and we are confident of further improvement in the companys performance in the future.

Profit before tax and extraordinary item was reported at Rs 51 crore as compared to a loss of Rs six crore for the same quarter the previous year. Earnings per share was Rs 1.57 as against a negative of Rs 0.2.

The company said in a statement that during the quarter, there was an extraordinary expenditure of Rs 122 crore on account of a Voluntary Retirement Scheme (VRS) by over 1,500 employees.

The companys production increased to 1.04 million tonne as against Rs 0.89 million tonne during the corresponding quarter, representing a 17 per cent growth. Exports during the quarter were reported at Rs 123 crore as against a Rs 22 crore for the corresponding previous quarter, an increase of 459 per cent.

The company added that the production of PP, PE and PVC increased by four per cent to 2,13,000 tonne for the reporting quarter. Domestic demand of polymers increased by 39 per cent during the quarter compared to corresponding previous quarter. There was a significant increase in the purchases made by the downstream industry, mainly to compensate for the lower purchases made during the preceding quarter on account of large scale volatility in prices due to the Gulf war during the quarter.

During the quarter, IPCL produced 1,86,000 tonne of ethylene, representing an increase of two per cent. Propylene production was at 63,000 tonne representing an increase of 13 per cent.

Production volumes of AF, ACN and MEG increase 14 per cent to 66,600 tonne for the quarter. Production of acrylates, caustic soda and EO was higher by 45 per cent at 49,500 tonne. During the quarter, Linear Alkyl Benzene production was 10,500 tonne as against 12,400 tonne in the previous quarter, owing to planned shutdown.