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Indo Gulf net up on buoyant sales

Our Bureau

MUMBAI, Oct. 29

Indo Gulf Corporation Ltd (IGCL) has reported a 46.5 per cent increase in net profit at Rs 76.24 crore for the second quarter of 2001-2002 as compared to Rs 52.04 crore in the year-ago period.

Net sales for the quarter moved up by 31 per cent to Rs 693.71 crore (Rs 531.55 crore).

The company's efforts to move up the value chain, reduce energy consumption, increase asset productivity and cost effectiveness and sustained exports helped it to retain its topline and bottomline growth, Mr D. Bhattacharya, Managing Director, Indo Gulf Corporation Ltd, said.

Indo Gulf's copper business was its major growth driver both in revenues and earnings.

Copper sales rose by 38 per cent to Rs 556.18 crore in the quarter. Exports at 11,857 tonnes were up from 3,372 tonnes in the year-ago quarter.

The company is considering adding further capacity to its copper smelter and is examining a different technology Ausmelt. ``We have to do a design test before we take any decision,'' an official said.

Birla Copper's improved turnover is on account of better plant utilisation, enhanced export volumes, stable domestic demand and commensurate contribution from di-ammonium phosphate (DAP) and precious metals, Mr Bhattacharya said.

Its precious metal refinery produced 1,524 kg of gold.

The turnover of the fertiliser division rose by eight per cent to Rs 137.53 crore (Rs 127.74 crore).

However, urea production is lower at 2.30 lakh tonnes as compared to 2.65 lakh tonnes in the year-ago period as a result of interim reassessment of the urea capacity and a restriction on production.

In the short run, fertiliser business is hit on account of restriction on production and downward revision in the retention price.

However, well distributed monsoon rains are expected to boost demand for the rabi season. Despite these constraints, the fertiliser sector's growth has been estimated at six per cent annually, Mr Bhattacharya said.

As for Dahej Harbour Infrastructure Ltd (DHIL), total cargo handled in the second quarter has increased by 80 per cent to 5,67,293 tonnes. Total cargo handled in the first-half was 1.23 million tonnes, an increase of 107 per cent.

According to Mr Bhattacharya, the company's performance has improved despite continuing demand recession, lower industrial growth and slowdown in investment in the country.

``LME (London Metal Exchange) prices are at the lowest in years and inventories are now close to a decade high,'' he said, adding that demand slump is seen in the US, Europe as well as Asia. Global refined copper surplus for 2001 is estimated over one mi llion tonnes.

Revenue-mix for the year comprises 78 per cent from copper and 20 per cent from fertilisers.

For the first-half period, Indo Gulf's net profit was up at Rs 126.71 crore (Rs 91.04 crore) and net sales Rs 1,274.90 (Rs 978.24 crore).