MCFL posts net loss of over Rs 12 crore in June quarter

NEW DELHI: UB group firm Mangalore Chemicals and Fertilisers Ltd (MCFL) today reported a standalone net loss of Rs 12.04 crore for the quarter ended June 30, 2013.

The company had clocked a net loss of Rs 12.49 crore in the same period last year, the company said in a BSE filing.

MCFL reported the net loss even as its total sales of fertilisers increased to Rs 607.11 crore during the first quarter of the 2013-14 fiscal, from Rs 597.75 crore in the same period corresponding year.

"Above normal rainfall in current season has increased the demand forecast for fertilisers. However, continued depreciation of rupee can adversely effect profitability," the company said in its footnotes.

According to the filing, the company's financial cost increased marginally to Rs 20.90 crore from Rs 18.05 crore in the review period.

Zuari Industries last month hiked its stake to nearly 16 per cent in Mangalore Chemicals & Fertilisers, where rival Deepak Fertilisers has picked up over 24 per cent equity.

Recently, MCFL's promoter Kingfisher Finvest India Ltd bought more than 11 lakh shares in the fertiliser firm for Rs 7.69 crore. Following this transaction, Kingfisher Finvest's stake in MCFL rose to 1.96 per cent from 1.01 per cent.

The company has one urea-manufacturing plant near Mangalore in Karnataka with a capacity of 3.8 lakh tonnes per annum. The shares of the company fell by 0.84 per cent to settle at Rs 53 apiece on the BSE today.