Spic reports higher losses in H1

By Our Special Correspondent

CHENNAI, NOV.16. Southern Petrochemical Industries Corporation (Spic) has reported a loss of Rs. 47.21 crores for the half-year ended September 30,2001 as against a loss of Rs. 30.10 crores in the same period last year. Sales and income from operations for the period under review were Rs. 759.41 crores (Rs. 1,103.56 crores). Interest charges claimed Rs. 106.09 crores (Rs.119.12 crores). The depreciation provision was placed at Rs. 21.33 crores (Rs. 25.41 crores).

The Vice-Chairman of the company, Mr. Ashwin Muthiah, told presspersons here today that the performance of the company in the second quarter was better when compared to the corresponding period last year. The plant shut-down during the first quarter and the consequent production loss were primarily responsible for the second-half show. He said efforts were under way to cut cost on all fronts. In this context, he pointed to negotiations with the banking consortium to restructure the debt. Once the consortium gave its nod for the debt revamp, it would go a long way in improving the liquidity position of the company and get more working capital limit, he felt.

Mr. Muthiah also said SPIC was holding parleys with the Indian Oil Corporation, principal supplier of raw material, to revive the credit facility. Trimming labour, cutting input cost, outsourcing IT services, product handling and distribution were some of the key constituents of Mr. Muthiah's focus at the moment. He expected all these initiatives to yield return by the first half of next financial year. He reiterated his stated stance to leverage the brand value of SPIC and get out of non- core investments like pharma and bio-technology. Asserting that for the moment SPIC would do everything to improve the health of its balance sheet, he, nonetheless, hinted that the company - few years hence - could, perhaps, look at mergers and acquisition opportunities.

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Section  : Business
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