Zuari Agro Chemicals Q1 net loss at Rs41 crore

Net income of Zuari Agro Chemicals declined to Rs978.3 crore in the June quarter from Rs1,555.7 crore a year ago

Photo: Pradeep Gaur/Mint
Photo: Pradeep Gaur/Mint

New Delhi: Zuari Agro Chemicals Ltd on Friday reported a net loss of Rs.40.6 crore in the quarter ended June this fiscal on sluggish sales.

The company had clocked a net profit of Rs.1.2 crore in the same period last year, it said in a BSE filing.

Net income declined to Rs.978.3 crore in April-June of 2016-17, from Rs.1,555.7 crore a year ago. “Due to significant reduction in the selling price of complex fertilisers and potash during the current quarter and subsequent to quarter-end, the company is expecting reduction claim of Rs.47.33 crore on account of stock lying with distribution chain,” the company said in the filing.

Price reduction claims pertaining to sale prior to the current quarter estimated at Rs.43.9 crore have been included under exceptional item, it added. In July, the centre had announced a cut in maximum retail price (MRP) of di-ammonium phosphate (DAP) by Rs.2,500 to Rs.22,000 per tonne, muriate of potash (MoP) by Rs.5,000 to Rs.11,000 per tonne and NPK nutrients by Rs.1,000 per tonne.

Shares of the Goa-based company declined by 2.22% to settle at Rs.185.05 on BSE on Friday.

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