Iffco turnover may fall 16% to Rs 21,000 cr on lower sales
Fertiliser major Iffco's turnover could drop by up to 16 percent to Rs 21,000 crore this fiscal as nutrient sales fell because of poor monsoon, a top official said.
New Delhi: Fertiliser major Iffco's turnover could drop by up to 16 percent to Rs 21,000 crore this fiscal as nutrient sales fell because of poor monsoon, a top official said.
Indian Farmers Fertiliser Co-operative Ltd (Iffco) had posted a net profit of Rs 772 crore on turnover of Rs 25,598 crore in the 2011-12 fiscal.
"Our fertiliser sales are estimated to decline to 96 lakh tonne this fiscal from about 121 lakh tonne in the previous year," Iffco Managing Director U S Awasthi told PTI.
He attributed the fall in fertiliser sales to lower demand of nutrients from farmers on account of bad monsoon in some parts of country, including Maharashtra and Karnataka.
Asked about expected turnover this fiscal, Awasthi said: "It will be around Rs 21,000-22,000 crore".
On the next fiscal's outlook, he said sales could improve compared to 2012-13, but would be lower than 2011-12 as fertiliser demand revives only after a gap of two years.
"We expect fertiliser sales to go up to 110 lakh tonne in 2013-14," Awasthi said, adding that sales will touch the 2011-12 level only in the following year.
Iffco, which has five manufacturing plants - two each in Gujarat and Uttar Pradesh and one in Orissa, is looking at expanding capacity if feedstock natural gas is made available.
It also has a plant in Oman in joint venture with Oman Oil Co (OOC) and is also setting up a plant in Canada.
Awasthi said the Oman plant can be expanded if the Gulf nation finds more natural gas.
"Currently they (Oman) are exploring to add more reserves. Once they find more reserves and make them available to us, we will expand the plant," he said.
In 2011-12, Iffco produced 84.42 lakh tonne fertilisers, of which 44.87 lakh tonne was urea and rest other nutrients.
Kalol plant in Gujarat has a production capacity of ammonia 0.36 million tonne per annum (TPA) and urea 0.55 million TPA. At Kandla (Gujarat), the production capacity of NPK/DAP is 2.42 million TPA.
In Phulpur (UP), ammonia capacity is 0.82 million TPA and urea 1.4 million TPA, while at Aonla (UP), ammonia capacity is 1.1 million TPA and urea 2 million MTPA.
Iffco's Paradeep plant in Orissa has DAP/NPK capacity of 2 million TPA.