RASHTRIYA CHEMICALS AND FERTILIZERS LIMITED (RCF) Q1 2020-21 PAT Up By 136 % at Rs 19.18 crore over Q1 2019-20. It was 8.13 crore in corresponding quarter of previous year. 

MUMBAI, 15 AUGUST, 2020 (GPN):  RCF reported total income of Rs.1649.64 crores during the period ended June 30, 2020 as compared to Rs.2661.91 crores during the period ended March 31, 2020.

The company has posted net profit / (loss) of Rs.19.20 crores for the period ended June 30, 2020 as against net profit / (loss) of Rs.142.38 crores for the period ended March 31, 2020.

The company has reported EPS of Rs.0.35 for the period ended June 30, 2020 as compared to Rs.2.58 for the period ended March 31, 2020.

Financials	Q1 FY2020-21	Q4 FY19-20	% Change
Total Income	₹ 1649.64 crs	₹ 2661.91 crs	-38.03%
Net Profit	₹ 19.20 crs	₹ 142.38 crs	-86.51%
EPS	₹ 0.35	₹ 2.58	-86.43%

Financial Results (Q1 FY 2020-21) – YoY Comparison

The company has reported total income of Rs.1649.64 crores during the period ended June 30, 2020 as compared to Rs.2441.46 crores during the period ended June 30, 2019.

The company has posted net profit / (loss) of Rs.19.20 crores for the period ended June 30, 2020 as against net profit / (loss) of Rs.7.98 crores for the period ended June 30, 2019.

The company has reported EPS of Rs.0.35 for the period ended June 30, 2020 as compared to Rs.0.14 for the period ended June 30, 2019.

Financials	Q1 FY2020-21	Q1 FY2019-20	% Change
Total Income	₹ 1649.64 crs	₹ 2441.46 crs	-32.43%
Net Profit	₹ 19.20 crs	₹ 7.98 crs	140.6%
EPS	₹ 0.35	₹ 0.14	150%

has improved its Gross Profit (EBIDTA) by 13% in the first quarter of current FY by registering an increase from Rs.111.79 crore in the previous year quarter  to Rs.126.41 crore in FY 2020-21. Rashtriya Chemicals and Fertilizers Ltd. (RCF) more than doubled its standalone profit after tax in the June 2020 quarter to ₹19.18 crore from ₹ 8.13 crore in corresponding quarter of previous year registering an increase of 136%.

Despite various challenges faced by the Company in supply chain/ fertilizer movement due to Covid-19 Pandemic, the financial performance for the current year has been better as compared to corresponding quarter previous year. Notwithstanding the reduction in Turnover, Company could earn decent margins due to energy efficiencies, Lower Gas Prices and lower finance costs. Relief was also provided by Government approved vintage allowance and additional fixed cost of Urea as per Modified NPS III and extension in reduction of energy norms for Trombay Urea.

RCF has recently launched hand cleansing IPA gel – RCF SAFFEROLA at reasonable prices for sanitizing hands and contribute its share in dealing with Covid-19 pandemic, in additions to financial contributions and other efforts. 

Continuing with its trend importing  Urea on government account, RCF as a State Trading Enterprise has imported 14 lakh MT of Urea in the F.Y. 2020-21 till date and is expecting to further extend this activity thereby helping the farming sector by easing the availability of Urea.

Going forward, with lockdown restrictions easing and good monsoons, Company is fully geared up and ready to capitalize on the opportunities coming its way hoping to better its performance in the coming quarters.

Shri  S C Mudgerikar, Chairman  &  Managing Director, Rashtriya Chemicals & Fertilizers Ltd. (RCF) said, “Our main focus has been on increasing our production and to improve our energy efficiencies this time. With this, our focus has been on further smoothen-out the supply chain. I feel the growth will be even better in the coming quarter and the running financial year because demand is quite strong in this sector. Meanwhile, whatever impact COVID-19 has had on our logistics supply chain in the first quarter has been regularized to a great extent. We have also tackled the problems that emerged due to it. So in the coming time, I believe that there will be strong growth in demand as well as the profit margins. RCF has provided enough capital expenditure in our hands to improve and strengthen our energy efficiencies. Based on these factors including the growth of around 21% in the cultivation land in terms of sowing area, I feel that going forward the profit margins and turnover figures will be better. The problems that we faced in the first quarter, like the lockdown followed by a labour shortage, have been normalized to a great extent and in the coming season, we will work more to improve it further.’’

Speaking further the CMD stated, “We have two plants and they are located at Trombay in Mumbai and Thal in Alibag area of Raigad district. Both of these plants are fully functional and 100% production level has been maintained in those. Dispatches that happens mainly through the railways, has been normalized to a great extent. With energy efficiency, we also have a special focus on trading. This month, we signed a long term Memorandum of Understanding (MoU) with the manufacturers. Muriate Potash (MOP) is a fertilizer, which is not manufactured in India, and we have signed an MoU for it. This gives me confidence that this will increase our market share even in trading in the overall industry and it will bring good results. With this, we are also focusing on increasing the production levels apart from improving energy efficiency and taking needed steps to boost our production. Apart from this, our research team is working on new fertilizers like organic fertilizer or bio-fertilizer. Interestingly, we have also launched a sanitizer in the market.Our fertilizer dues stand around Rs 4,000 crore and the government. The government has also supported us a lot in this in the meantime and the efforts are still on, for instance, in May 2020, a sum of nearly Rs 10,000 crore was paid to the industry under a special banking arrangement. But, the industry is still facing liquidity constraints. But as far as RCF is concerned, our position is quite strong in this matter and our borrowings are quite low as compared to the receivables from the government. ’’ ENDS

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