Rashtriya Chemicals and Fertilizers Ltd. (RCF) tripled its standalone profit after tax in the March quarter to ₹ 142.28 crore from ₹ 48.47 crore in previous year registering an increase of 193.54%.
Profit after tax for financial year ended 31st March 2020 surged to ₹ 208.15 crore from ₹ 139.17 crore in previous year.
Annual revenue from operations jumped 9 % year-on-year (y-o-y) to ₹ 9698 crore, which is the highest ever since inception. Annual EBIDTA before exceptional items grew 36 % y-o-y to Rs. 711.96 crore.
Despite various challenges being faced by the Company, the financial performance for the current year has been better as compared to previous year.
Fertilizer industry got some relief as Government approved vintage allowance of ₹ 150 per tonne of Urea to certain plants (30 years old + converted to Gas) and additional fixed cost of ₹ 350 per tonne of Urea as per Modified NPS III which was long awaited. RCF has accounted for the same in Q4 of FY 2019-20.
The Board has recommended a dividend of 28.40%, its highest ever dividend declaration in the history of the Company.
During FY 2019-20 overall sale of manufactured & traded fertilizers increased by 7% over previous year. Company’s Complex Fertilizer Suphala sale increased by more than 15% over previous year. RCF launched two new products during FY 2019-20 viz organic growth stimulant & water soluble Silicon Fertilizers. RCF commissioned 15 million litre per day capacity Sewage Treatment Plant during FY 2019-20. RCF also got recognized as a State Trading Enterprise for import of Urea on government account during FY 2019-20 & imported 16 lakh MT of Urea.
Going forward, the farming sector is expected to get help from a good monsoon forecast in FY 2020-21. In the ongoing current Covid-19 pandemic, Company is fully geared up to face the upcoming challenges and ready to capitalize on the opportunities coming its way.