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Indo Gulf net rises 16% to Rs 50.47 cr

MUMBAI: Indo Gulf Corporation Ltd (IGCL) has reported a 16 per cent increase in net profit at Rs 50.47 crore for the first quarter ended June 30, 2001 as compared to Rs 43.34 crore in the year-ago period.

The debt restructuring undertaken by the company reduced the interest charges by 21 per cent during the quarter, resulting in a saving of Rs 7.58 crore. Interest charges stood at Rs 28.66 crore (Rs 36.24 crore).

Sales turnover jumped by 30 per cent to Rs 581.19 crore. Turnover from its fertiliser business dipped to Rs 124.36 crore (Rs 137.38 crore).

The company said that an interim upward reassessment of the urea capacity and the reduction in retention price by the Government coupled with a restriction on production at 100 per cent level of reassessed capacity has impacted the profitability of the f ertiliser business.

However, the company's outlook for fertiliser looks positive following fairly good monsoon coverage. However, demand growth hinges on the Government policy.

The outlook for the company's copper division which recorded a 48 per cent increase in turnover at Rs 456.83 crore, is expected to remain positive.

The key growth drivers for this segment have been exports and the performance of its precious metals refinery and the di-ammonium phosphate (DAP) plants, according to the company.

During the quarter, the company strengthened its position in the export markets of South-East Asia and West Asia. ``Exports, which rose by 5,000 tonnes validated the world-class quality of the company's products,'' Indo Gulf said.

Despite the ``challenging industrial environment'', domestic volumes grew by nine per cent.

Demand for its DAP also increased by 60 per cent in the core markets of Gujarat and Rajasthan. -- Our Bureau