Indian Economy News

RCF Crosses Rs 100 Crore Mark in Cumulative Sales of its Industrial Products in Current Financial Year

Despite the current COVID-19 situation, Rashtriya Chemicals and Fertilizers Ltd (RCF), a PSU under the Department of Fertilizers, Government of India, has been successful in keeping its operations running and has crossed Rs 100 crore (US$ 14.19 million) in sales of its Industrial Products in the first two months of the current Financial year 2020-21.

 Major Products are:

• Ammonia- as refrigerant, for nitriding of steel, rocket fuel, pharmaceuticals.
• Ammonium Nitrate- in explosives for coal mining etc.
• Ammonium Bi-Carbonate- for bakery products, tanneries.
• Methyl Amines- in pesticides, dyestuff, pharmaceuticals.
• Concentrated Nitric Acid: in explosives, pharmaceuticals.
• Dilute Nitric Acid: in jewellry, propellant.
• Argon - arc welding.
• Formic Acid - in rubber, leather.
• Di-Methyl Formamide - as solvent for fibres, spandex, polyamides.
• Di-Methyl Acetamide - as solvent for polyester film, acrylic fibres.
• Sodium Nitrate: in propellants, explosives

RCF’s Q4 2019-20 Profit after Tax rises over 190 per cent over Q4 2018-19.

Rashtriya Chemicals and Fertilizers Ltd. (RCF) tripled its standalone profit after tax in the March quarter to Rs 142.28 crore (US$ 20.18 million) from Rs 48.47 crore (US$ 6.88 million) in previous year registering an increase of 193.54 per cent.

RCF’s Profit after Tax for FY 2019-20 rises 49 per cent over FY 2018-19

Profit after tax for financial year ended 31st March 2020 surged to Rs 208.15 crore (US$ 29.53 million) from Rs 139.17 crore (US$ 19.74 million) in previous year.

Annual revenue from operations jumped 9 per cent year-on-year (y-o-y) to Rs 9698 crore (US$ 1.38 billion), which is the highest ever since inception. Annual EBIDTA before exceptional items grew 36 per cent y-o-y to Rs 711.96 crore (US$ 101 million).

Despite various challenges being faced by the Company, the financial performance for the current year has been better as compared to previous year.

Fertilizer industry got some relief as Government approved vintage allowance of Rs 150 (US$ 2.12) per tonne to certain plants (30 years old + converted to Gas) and additional fixed cost of Rs 350 (US$ 4.96) per tonne of Urea as per Modified NPS III which was long awaited. RCF has accounted for the same in Q4 of FY2019-20.

The Board has recommended a dividend of 28.40 per cent, its highest-ever dividend declaration in the history of the Company.

S.C. Mudgerikar, CMD RCF, has stated that during the FY2019-20 the overall sale of manufactured & traded fertilizers increased by 7 per cent over previous year. Company's Complex Fertilizer-Suphala sale increased by more than 15 per cent over previous year. RCF launched two new products during FY 2019-20 viz. Organic Growth Stimulant & Water-Soluble Silicon Fertilizer. RCF commissioned 15 million litre per day capacity Sewage Treatment Plant during FY 2019-20. RCF also got recognized as a State Trading Enterprise for import of Urea on government account & imported 16 lakh MT of Urea.

Going forward, the farming sector is expected to get help from a good monsoon forecast in FY 2020-21. In the ongoing current COVID-19 pandemic, Company is fully geared -up to face the upcoming challenges and ready to capitalize on the opportunities coming its way.

 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.