It’s light at end of tunnel for FACT

Company posts a profit of ₹585 lakh as production and sales improve

KOCHI: The financially-troubled Fertilizers and Chemicals Travancore Limited (FACT) has emerged at the end of the quarter ending September 30 with what the company officially described as “reasonable profit” after several years.

The public sector unit, which has been facing adverse financial conditions for a long time, weathered the difficulties with better production, marketing, and sales turnover during the July-September period. It helped FACT “post a reasonably good profit of ₹585 lakh,” said a statement from the company on Friday.

The total sales turnover for the quarter went up to ₹607.43 crore as against ₹296.47 crore in the preceding quarter (April-June 2017). Production and sales performance during the last few months also improved substantially with an all-time record production of ammonium sulphate and sulphuric acid in the Udyogamandal complex.

The production of Factamfos and ammonium sulphate surpassed the respective targets set for them. While the production target for Factamfos during July-September was 1.98 lakh tonnes, the actual turnout touched 2.08 lakh tonnes. The same level of improved production was achieved in ammonium sulphate, with a total production of 58,500 tonnes as against the target of 44,500 tonnes.

FACT’s marketing division also did well during the July-September period. While the sale of Factamfos during August 2017 was a record in 15 years with a total outflow of 76,076 tonnes, the total sale during the quarter also beat the target set for the period. Though the sales target for the quarter was 1.98 lakh tonnes, the actual sales stood at 2.08 lakh tonnes. FACT could also sell out a total of 1,21,930 tonnes of gypsum during the July-September quarter.

Meanwhile, the company signed a memorandum of understanding (MoU) with Bharat Petroleum Corporation’s Kochi refinery for bringing down import of raw materials. The refinery will supply sulphur. According to the understanding, Kochi refinery will supply sulphur to FACT to meet around 60% of the fertilizer unit’s requirements for the next five years.

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Printable version | Mar 29, 2020 12:44:45 AM | https://www.thehindu.com/news/cities/Kochi/its-light-at-end-of-tunnel-for-fact/article20547562.ece

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