Financials:

Today, Southern Petrochemical Industries Corporation Ltd. (SPIC), one of India's pioneering agri-nutrient and fertilizer companies, announced its annual audited results for FY 2023 – 24.

Quarterly and Annual Results:
 

In the last quarter of FY24, the Company registered an income of INR 132.46croresand net loss after taxof INR (29.18)crores compared to an income of INR 676.34croresand net profit after tax of INR 23.53croresduring the corresponding quarter of the previous year.

Due to heavy rain and flood in Tuticorin, the Company’s plant at Tuticorin was shut down for 77 days in last quarter, which lead to reduced turnover &net loss in the quarter.  The Company had made claims with Insurance companies for the ‘Loss of Profit’ and the claims will be recognized on receipt basis.

In the year ended March 2024, the Company earned a total income of INR 1962.16crores compared to INR 2849.45crores during the previous year. During the year, the Company recorded anet profit after taxofINR 87.91croresvis-a-visnet profit after tax of INR 284.44croresin the previous year.

The Board of Directors have recommended a dividend of 15 % (Rs.1.50 per share) on Equity Capital.
 

Leadership Comment:

MrAshwinMuthiah, Chairman – SPIC&Founder Chairman, AM International, Singapore

"The financial results were impacted by various factors, including severe floods in December. Despite operational challenges, our ability to resume and normalize operations in a time-bound manner underscores our operational resilience. Transitioning to natural gas as a raw material source was a significant step this year, and we're accelerating our focus towards sustainable manufacturing and carbon-neutral goals. As our CAPEX plans get implemented, we foresee capacity expansion and initiatives aimed at profitable growth in the future. We are committed to the Government of India'sAtmanirbhar Bharat program and green fertilizer focus, continuing with our aim to serve our farmer community."

Fertilizer sector overview:

In 2023, India saw a significant 21.3% drop in urea imports to 7.41 million tonnes, according to S&P Global Commodity Insights. This decline was due to increased domestic production, whichrose by 13.4% to 31.11 million tonnes compared to the previous year. Urea availability andsales in 2023 continued to rise steadily, with availability increasing by 3.65% to 41.16 milliontonnes and sales by 3.25% to 38.11 million tonnes.

In a bid to boost crop yields and meet the needs of various plantings, the Ministry of Agricultureand Farmers Welfare recently updated the Fertiliser Control Order of 1985. This revisionincludes a wider variety of fertiliser options, giving farmers more tools to address unique soilproblems and ensure healthier plants.