CFL posts 32.8% increase in net profit

CHENNAI: Coromandel Fertilisers Limited (CFL), a part of the Murugappa Group, has posted a 32.8 per cent increase in net profit at Rs.64.39 crore for H1 of 2006-07 as against Rs.48.49 crore during the corresponding period last year.

A company release said the company achieved highest production and sales of Complex Fertilisers during the period.

The Board of Directors of the company has approved a scheme of amalgamation of Ficom Organics Limited and its wholly owned subsidiary Rasilah Investments Limited with Coromandel Fertilisers Limited.

It also approved a swap of ratio of three equity shares of CFL for every 11 equity shares of Ficom.

The amalgamation will enable the company to consolidate it's pesticide business, the release said.

CFL proposes to raise funds either through issue of equity/equity linked securities upto Rs 230 crore or its equivalent in any other currency and has approved convening an EGM on November 17 to seek approval for this purpose, the release added.

The fund raising proposal is expected to enable the company finance its future expansion plans, new projects, acquisitions, and long-term working capital requirements, it said.