Chennai, Oct 23 : The Chennai-based Southern Petrochemicals and Industries Corporations Ltd (Spic) on Monday reported a 65 per cent drop in its net profit during the quarter ended September 30, 2000. Company sources attributed the drastic fall in net profit to the non-payment of fertiliser subsidy. Fertiliser production accounts for nearly 85 per cent of the company's total turnover. Besides, the company's cash flow was substantially affected following the demand for advance payment for naphtha, the major feedstock of the company.According to unaudited financial results released by the company, it has reported a net profit of Rs 11.24 crore during the quarter ended September 30, 2000, down from Rs 32.15 crore posted during the same period last year. The income from sales also registered a fall of 8 per cent to Rs 739.99 crore during the second quarter of the current fiscal from Rs 807.50 crore during the corresponding period last year. The company's interest outgo went up to Rs 69.33 crore (Rs 49.14 crore). Depreciation for the period went up to Rs 12.86 crore from Rs 14.11 crore during the period.
The company statement said that the interest incurred by the company on specific borrowings to the tune of Rs 25.62 crore for the funds used for investments and advances are capitalised as a part of the accounting policy followed by the company.
A company spokesman said that the vexed rescheduling of the FRN issue was in progress and would be completed in three months' time.
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