Indo Gulf Corporation, of the Aditya Birla Group, has posted a 35 per cent rise in net profit at Rs 682.3 million for the first quarter ended June 30 compared with Rs 504.7 million in the same period of last year. The company's turnover grew by 23 per cent at Rs 7.14 billion (Rs 5.81 billion). Exports were up 237 per cent at Rs 1.33 billion, thanks to a big leap from 5,076 MT to 16,754 MT. Its debt restructuring has led to lower interest charges by 17 per cent during the quarter, resulting in a saving of Rs 50 million. Thus, lowering of import duty from 35 per cent to 25 per cent on copper has had little adverse impact on Indo Gulf performance and so has the slack LME prices. The company has carved out a niche for itself in the export markets of South East Asia and the Middle East. The company's overall performance largely hinges on the performance of the copper business as it contributes more than 80 per cent to the total turnover. As a result, net sales was up 22.9 per cent to Rs 7.65 billion despite a 19.1 per cent fall in fertiliser turnover to Rs 1.02 billion. Fertiliser business continues to suffer as its performance is influenced by the government policies. The government's capping of production and lowering of retention price have made things difficult for the industry.
NSTL
