Recorded 80% jump in net profit in Q3: RG Rajan, Rashtriya Chemicals and Fertilizers

In a chat with ET Now, RG Rajan, CMD, Rashtriya Chemicals and Fertilizers Ltd, talks about his company's Q3 earnings. Excerpts:

ET Now: Q3 was a strong quarter for your company. What are the key highlights, according to you?

RG Rajan: As compared to the third quarter of last year, the turnover has gone up by around 40% and the net profit has gone up by 80%. The main reasons for this are more output at both Thal and Trombay for both urea and NPK fertilisers and, secondly, the lower energy consumption in the urea plants at Thal and Trombay.

ET Now: What is the volume offtake you have seen in the quarter?

RG Rajan: This quarter we have got substantial growth, both in production as well as in marketing. We produced around two lakh tonnes of additional urea and NPK fertilisers at both the plants and similarly, we had also done trading of around three lakh tonnes of additional fertilisers.

ET Now: Urea subsidy has been a contentious issue. How much have you received as dues in the quarter and what is the outstanding figure now?

RG Rajan: This quarter we have received around Rs 800 crore and the total outstanding is around Rs 2500 crore. It also includes something for the last year also.

ET Now: What about the budget? How do you see the urea subsidy changing for FY16?

RG Rajan: The entire industry is looking forward to the Budget. Some new policies may be announced, which will be beneficial to the industry.