MCFL Q4 net profit drops by 22pc on poor fertiliser sales

NEW DELHI: UB Group's Mangalore Chemicals and Fertilisers ( MCFL) today posted about 22 per cent drop in standalone net profit at Rs 16.84 crore for the quarter ended March, 2013, as sales dropped due to poor demand in drought- hit states and rise in prices of non-urea fertilisers.

The company had clocked a net profit of Rs 21.46 crore in the same period last financial year, it said.

"Severe drought in the company's operating territories (Karnataka and Maharashtra) during kharif and rabi seasons as well as sharp increase in prices of non-urea fertilisers has adversely affected demand for company's products," the MCFL said in a filing to the BSE.

Net sales declined sharply by 36 per cent to Rs 649.80 crore in the fourth quarter of the 2012-13 fiscal, as against Rs 1,014.66 crore in the same quarter last year.

For 2012-13 fiscal, MCFL reported a marginal fall in its net profit to Rs 66.57 crore from Rs 69.09 crore in the previous fiscal.

Its net income declined to Rs 2,779.58 crore from Rs 3,707 crore in the review period.

The company has approved a dividend of Rs 1.20 per equity share of Rs 10 each for 2012-13 fiscal.

Shares of the company rose by 3.49 per cent to settle at Rs 41.50 on the BSE.