New Delhi: Despite the current COVID-19 situation, Rashtriya Chemicals and Fertilizers Limited (RCF), a Miniratna PSU under the Department of Fertilizers, has been successful in keeping its operations running and has crossed Rs 100 crore in sales of its industrial products in the first two months of the current financial year 2020-21.
Despite various challenges being faced by the company, the financial performance for the current year has been better as compared to the previous year, said a press release from the Ministry of Chemicals and Fertilizers.
The fertilizer industry has been given some relief as the government has approved vintage allowance of Rs 150 per tonne to certain plants (30 years old + converted to Gas) and additional fixed cost of Rs 350 per tonne of urea as per modified NPS-III which was long-awaited. RCF has accounted for the same in the fourth quarter (Q4) of FY 2019-20.
The RCF board has recommended a dividend of 28.40 percent, which is the highest-ever dividend declared by the company.
RCF’s Chairman & Managing Director (CMD) SC Mudgerikar said that during the FY 2019-20 the overall sale of manufactured and traded fertilizers increased by 7 percent over the previous year. Company's complex fertilizer (Suphala) sale increased by more than 15 percent over the previous year. RCF launched two new products during FY 2019-20 viz. Organic Growth Stimulant & Water Soluble Silicon Fertilizer. RCF also commissioned 15 million litres per day capacity sewage treatment plant during FY 2019-20. RCF also got recognised as a State Trading Enterprise for import of urea on government account and imported 16 lakh MT of urea.
RCF tripled its standalone profit after tax (PAT) in the fourth quarter (Q4) of the financial year 2019-20 to Rs 142.28 crore from Rs 48.47 crore in the corresponding period of the previous financial year (FY2018-19) registering an increase of 193.54 percent.
The overall profit after tax for the financial year (FY2019-29) ended on March 31, surged to Rs 208.15 crore from Rs 139.17 core in the previous year, registering an increase of 49% percent.
Annual revenue from operations jumped 9 percent year-on-year (y-o-y) to Rs 9,698 crores, which is the highest ever since inception. Annual EBIDTA before exceptional items grew 36 percent y-o-y to Rs 711.96 crores.
The farming sector is expected to get help from a good monsoon forecast in FY 2020-21. In the ongoing current COVID-19 pandemic, the company is fully geared -up to face the upcoming challenges and ready to capitalize on the opportunities coming it's way, the release added.
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