Highlights-

• The total operating income for the quarter stood at Rs 375.03 crore, up marginally by 2.2% as the higher revenues from the chemical segment were largely offset by a sharp decline in the fertilizer trading revenues during the quarter.
• The Company's own manufactured component of the sales grew 20% (fertilizer and chemicals) to Rs 311.75 crore.
• The operating profit margin (OPM) improved significantly during the quarter to 21.8% as compared to 18.6%, a 320 basis point growth.
• Sales for the fertilizer business stood at Rs 120.27 crores, a decline of 24%.
• The trading component of fertilizers was down by 37% to Rs 71.48 crore. The trading component of fertilizer sales was lower mainly on account of lower prices for bulk fertilizers like MOP. Fertilizer margins at 3% were adversely affected due to lower raw material availability.
• The Company also announced that it had introduced an enhanced version of its Nitro Phosphate fertilizer product, Mahadhan Power, with the grading of 24:24:0 from its earlier 23:23:0.
• The company has contracted raw material (phos acid) at USD 830 / mt and has increased ANP prices by 5% in the previous two months.
• The Chemicals business grew by 23% for the quarter to Rs 262.96 crores.
• Methanol prices increased by 40% to Rs 16,000 / mt from Rs 11,000 / mt in Q2FY11. IPA and other chemicals too witnessed marginal price increase. Although raw material cost, mainly gas and ammonia increased marginally, it was compensated by higher finished product prices.
• EBITA up by 17% for the quarter.
• Profit before Tax (before exceptional items) grew 31% to Rs 60.35 crores.
• EO for the quarter represent Rs 3.38 crore being cost of assets restructured in the real estate business (previous years figures include gain of Rs 25.71 crore (net) arising out of sale of leasehold land net of cost of assets restructured in real estate business.)
• PAT stood at Rs 40.26 crores against Rs 52.86 crores. PAT for the quarter under review is not comparable with the corresponding quarter for the previous financial year given the exceptional gain of Rs 25.71 crore (net) arising from sale of surplus land in Q3 FY10.
• During the quarter an own manufactured fertilizer shipment was diverted due to oil spill in the Arabian sea.
• The company in its new 300000 tpa Technical Ammonium Nitrate complex at Taloja in Western Maharashtra, triple its earlier capacity is producing 12000-15000 tonnes per month. Expect capacity utilization of 70% next year.
• The company expects government to enhance the NBS scheme.
• No major capital expenditure plans as of now, but working on couple of new projects in the chemical segment.
• The company is waiting for a few tie ups to take place, before announcement of any capital expenditures.
• The company is also looking for new opportunities as all its plants are working at full capacity utilizations rates.
• Maintain healthy outlook on chemical segment margins in the near future. New TAN plant to drive revenues / profits in FY12.