Godavari Fertilisers and Chemicals Limited financial results

18 January, 2007: The Board of Directors of Godavari Fertilisers and Chemicals Limited (GFCL) has approved un-audited financial results for the nine months period ended 31st December 2006, at their meeting held to-day.

GFCL continued to improve its performance during the 9 months ended Dec 06. Production increased to 8.94 lakh tonnes and sales of manufactured product increased to 8.76 lakh tonne, as compared to 7.52 lakh tonnes and 7.65 lakh tonnes, respectively, during the same period last year, an increase of 18.9 per cent and 14.5 per cent, respectively. It has also improved its market share in its primary market zone. With higher productivity, efficiency of conversion has gone up significantly.

Based on this, GFCL has reported an improved performance for the period Apr - Dec 06. Turnover was higher at Rs.1419 crore [previous year: Rs.1113 crore], representing an increase of 27 per cent. Profit Before Tax has increased by 158 per cent to Rs.65.13 crore, as compared to Rs.25.26 crore during the same period last year, despite a steep increase in finance costs by 122 per cent and freight rates by 24 per cent. The finance costs have gone up due to higher borrowings on account of delay / non release of subsidy by the Government.

The Profit After Tax [PAT] is Rs.43.08 crore, after providing for depreciation of Rs.4.94 crore and interest charges of Rs.25.07 crore [previous year: Rs.6.32 crore and Rs.11.30 crore, respectively], an increase of 187 per cent over the corresponding period last year. Provision for taxation has increased to Rs.22.06 crore [previous year: Rs.10.23 crore]. Both PBT and PAT for the nine month period have exceeded full year figures of 2005-06 and are the all time high since inception of the Company.

With regard to the proposed expansion of capacity at Kakinada, a public hearing has been successfully held. Application for consent is pending for approval by the Ministry of Environment and Forests. Engineering work shall commence immediately on receipt of the above.

About Murugappa Group
Headquartered in Chennai, the $1.6 billion Murugappa Group is India's leading business conglomerate, which fosters an environment of professionalism for its strong workforce of 28,000 employees. The group has 29 registered companies which are market leaders in diverse areas of business viz. engineering, abrasives, finance, general insurance, sanitary ware, cycles, sugar, farm inputs, fertilizers, plantations, bio products and nutraceuticals. The Group has manufacturing units in 12 states.

The Group has forged strong joint venture alliances with leading international companies like Roca of Spain, Cargill of Geneva, Cerdak of South Africa, Jingri Diamond Industrial Company of China, DBS Bank of Singapore, Mitsui Sumitomo of Japan and Groupe Chimique Tunisien of Tunisia and has consolidated its status as one of the fastest growing diversified business house in India.

Conatct information

K A Nair
Managing Director
GFCL
Murugappa group
Tel: 040- 27703004 / 099494 31949
Email: NairKA@ gfcl.murugappa.com

Chandrika Raman
Sr. Manager - Group Corporate Communications
Murugappa group
Tel: 25306535 / 98400 71172
Email: ChandrikaR@corp.murugappa.com