Date:26/10/2005 URL: http://www.thehindubusinessline.com/2005/10/26/stories/2005102603790400.htm

Back Extraordinary income boosts IPCL Q2 net by 119 pc

Our Bureau

Mumbai , Oct 25

INDIAN Petrochemicals Corporation Ltd (IPCL) has registered a 119 per cent increase in net profit at Rs 303 crore for the second quarter of of this financial year, compared to Rs 138 crore in the year-ago period.

Profits moved up substantially because of an extraordinary income of Rs 120 crore, which represents write back of the provision pertaining to Take or Pay agreement entered into with Gujarat Chemicals Port Terminal Company Ltd (GCPTCL) earlier as one of the promoters.

Net turnover stood at Rs 2,045 crore for the second quarter (Rs 1,819 crore last year). For the first half the company registered a net turnover of Rs 4,028 crore as against Rs 3,629 crore during the year-ago period.

The company's exports during this year for the first half had been Rs 679 crore as against Rs 473 crore for the same period last year.

The company said feedstock prices were extremely volatile in line with crude oil prices.

On the product side prices of polymer products fell sharply during April and May 2005 but recovered in the second half of June 2005. Overall, margins between polymer prices and feedstock prices remained strong in the second quarter of the year.

Production volumes touched 2.69 million tonnes during the half year, representing an increase of four per cent compared to the same period previous year.

In the Bombay Stock Exchange IPCL shares closed today at Rs 222.50 as against previous close of Rs 222.80.