Hind Lever Chem Q2 profit at Rs. 4.16 cr.

MUMBAI, AUG. 30. Hind Lever Chemicals (HLCL) has announced a net profit of Rs. 4.16 crores for the quarter ended June 2001 against a loss of Rs. 19.8 crores in the corresponding period of the previous year. The company's turnover for the period was at Rs. 209.6 crores (Rs. 153.9 crores).

However, according to the company, the results are not comparable since in the previous year, the company had to recognise the impact of retrospective reduction in subsidy and pending announcement of the final rates or method of calculation, subsidiary for the quarter ending June 2000 could be calculated only based on base rates then applicable.

The bulk chemicals business has continued to contribute handsomely to the turnover with a cumulative volume growth of 12 per cent for the six months ending June 2001.

Sales of own manufactured fertilizers grew by 49 per cent during the June quarter 2001 over the corresponding period. Consequently, despite suspension of imported DAP trading operations, which have become unviable due to unremunerative subsidy policy on imports, the overall turnover for the first six months of the year at Rs. 429.5 crores recorded a growth of 11 per cent over the previous year (Rs. 385.4 crores) and the profit after tax at Rs. 8.15 crores against a net loss of Rs. 11.65 crores in the same period last year.

According to a company press release, despite numerous representations by the company at various levels, state certification of subsidy continues to be pending in the state of Bihar.

It is imperative that the state government takes this up on priority and completes the required certification without any further delay. Consequently, high amounts of price concessions were pending with the Government leading to higher interest cost of Rs. 6.4 crores (Rs. 4.9 crores).

Similarly, interest for the first six months was higher at Rs. 12.8 crores (Rs. 9.8 crores).

The Government is yet to announce the base rates for the year 2001-02 and the final rates for the quarter ending June 2001.

``It is hoped that the Government will recognise the increased cost of inputs, higher transportation cost and rupee depreciation while announcing the rates. In order to mitigate the working capital position of the fertilizer companies, the on account payment should be at least increased to 90 per cent.'' the release said.

HLCL hopes that the government will take the above action to protect this core industry which is critical to ensure the food security of the country.