Nagarjuna Fertilisers’: more turnover but less profit

Nagarjuna Fertilizers and Chemicals (NFCL), the flagship company of the Nagarjuna group, has reported a higher turnover of Rs. 1,435.96 crores but a lower net profit of Rs. 113.50 crores due to higher interest burden of Rs. 283 crores (Rs. 246 crores), and tax provision of Rs. 34.62 crores (Rs. 16.86 crores) for the year ended March 31,2000.

For the corresponding period of the previous year the turnover was Rs. 1,214.54 crores and net profit Rs. 143.74 crores.

A dividend is recommended at a reduced rate of 10 per cent as against 20 per cent in the previous year. Another significant decision taken was to ‘defer’ the restructuring of NFCL’s equity capital, which was announced earlier this month.

The decision to reduce dividend was meant to conserve resources for the ongoing investment in refinery project and also due to accumulation of subsidy receivables from the Government.


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