After reporting a 65 percent increase in its net profit at Rs 17.80 crore for the quarter ended September on higher sales, Rashtriya Chemicals and Fertilisers (RCF) on Tuesday said higher production cost led to lower margins.
In an interview to CNBC-TV18, Umesh Dhatrak, chief managing director, said RCF has increased chemical production, restarted formic acid and methanol units and that is contributing to the numbers.
Talking about revenues, Dhatrak said, “Urea and suphala’s production as well as sale has increased. For urea, our sale and production has increased by 80,000 metric tonne and for suphala, it has increased by about 60,000 metric tonne."
Further, Dhatrak said, “Finance cost has increased because of our investment in capex. Our short-term loan has increased by about Rs 600 crore mainly due to the ongoing projects and energy saving schemes in Trombay and Thal units."
On monetisation, Dhatrak said, “We do not have surplus land. Whatever land is there is for our factory and land in township is also fully occupied with residential colony. Therefore, no surplus land with us."