Date:25/10/2005 URL: http://www.thehindubusinessline.com/2005/10/25/stories/2005102501910200.htm

Back Indo-Gulf net profit rises 39 pc in Q2

Our Bureau

Mumbai , Oct 24

INDO Gulf Fertilisers Ltd (IGFL) has reported 38.85 per cent increase in net profit for the quarter ended September to Rs 22.48 crore from Rs 16.19 crore in the corresponding previous period. This was despite a 10.23 per cent fall in net sales to Rs 213.98 crore (Rs 238.26 crore).

For the first half of the year, the company posted 31.98 per cent rise in net profit to Rs 31.90 crore (Rs 24.17 crore) on 4.83 per cent fall in net sales to Rs 316.94 crore (Rs 333.03 crore).

The lower net sales were primarily a reflection of Indo-Gulf's switchover to natural gas as feedstock, from the more expensive naphtha it was using last year.

Urea sales were marginally higher at 3.48 lakh tonnes (3.39 lakh tonnes). The company produced 2.46 lakh tonnes of urea, reflecting 113 per cent capacity utilisation, an official statement said.

According to it, the availability of gas including regassified LNG though satisfactory overall, was marginally lower than the requirement.

"The company could achieve higher profitability due to its continuous focus on operational efficiencies and better price realisation," the statement said.

"Given the favourable weather conditions, the demand for fertilisers during the rabi 2005-06 season is expected to be buoyant. This augurs well for the company," it said on business outlook.

On Monday, the Indo Gulf scrip ended at Rs 191.10 from the previous close of Rs 190.15 on the BSE.