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NT Bureau
Chennai, Jan 25:

        Coromandel Fertilizers Limited, part of $1.6 billion Murugappa group, has achieved an improvement in profitability in the nine months ended 31 December, 2006, thanks to the initiatives taken by the fertilizer major.

        At the board meeting held yesterday to approve the unaudited financial results of for the nine months period, the chairman A Vellaiyan said that the company achieved improvement in profitability due to higher sales volume, enhanced productivity, lower conversion cost and various intitiatives taken on manufacturing, distribution and sales front.

        Moreover, the company achieved highest production and sales of complex fertilisers during the period. In spite of adverse market conditions, the company's pesticides business has shown growth over last year in sale of key specialities.

        According to Coromandel Fertilizers Limited's managing director V Ravichandran, the company's sales turnover during the nine months period ended 31 December, 2006 stood at Rs 1596.53 crore as against Rs 1290.86 crore in the corresponding period last year, representing an increase of 24 per cent.

        The gross profit before depreciation, interest and taxes for the nine months period is Rs 182.63 crore against Rs135.04 crore during the same period last year, showing growth of 35.2 per cent; depreciation provided is Rs 27.06 crore (corresponding period last year Rs 26.98 crore), interest charged Rs 21.62 crore (corresponding period last year Rs 17.06 crore). Profit before tax has gone up by 47.2 per cent to Rs 133.95 crore against Rs 91.00 crore for the corresponding period of last year. Net provision for taxation (including Fringe Benefit Tax) for the period works out to Rs 47.80 crore (net of deferred tax credit) (corresponding period last year being Rs 23.38 crore). The net profit is Rs 86.15 crore as against Rs 67.62 crore during the corresponding period last year, representing an increase of 27.4 per cent over the corresponding period in the previous year.

        The board of directors also approved the acquisition of 80,01,000 equity shares of Godavari Fertilisers and Chemicals Limited (GFCL) held by Indian Farmers Fertiliser Co-operative Limited (IFFCO) representing 25 per cent of the equity capital of GFCL at a price of Rs 150 per share and also made a public announcement to the shareholders of GFCL for acquiring upto 20 per cent of equity shares pursuant to the SEBI (substantial acquisition of shares and takeovers) Regulations, 1997 at such price determined as per the said regulations.

        Both the Mumbai and Andhra Pradesh courts are convening the shareholders meeting to approve the scheme of amalgamation of Ficom Organics Limited and its wholly owned subsidiary company Rasilah Investments Limited with Coromandel Fertilisers Limited on 5 February, 2007 (Ficom) in Mumbai and on 7 February, 2007 (CFL) in Hyderabad. The company would, thereafter, file the petition in the High Court of Andhra Pradesh for seeking court's approval of the scheme.