2 months ago
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Southern petrochemical Industries Corpn. Ltd. (SPIC) reported Q3 standalone net profit contracted year-on-year by 67% to ₹28 crore on account of an increase in global raw-material prices and the recent cyclone.
Income from operations declined to ₹504 crore from ₹696 crore, said the fertiliser manufacturer in a statement.
The Urea plant was in operation for 74 days. Spic produced and sold 1.45 lakh tonne and 1.46 lakh tonne of urea respectively. It received a subsidy of ₹406 crore based on the provisional Retention Price (RP).
Due to the floods, the Tuticorin plant suffered loss of raw material inventory, work in progress, finished goods and stores and spares amounting to ₹19 crore.
“The devastating cyclone and subsequent plant damage in Tuticorin led to a complete stoppage of work for a few weeks; however, the plant has restarted. Moving towards natural gas usage will rationalize input costs,” said Chairman Ashwin Muthiah.
He also said the company faced certain challenges, including raw material and price volatility in global fertilizer markets.
