SPIC Ltd posts Q4 net loss of Rs 29.18 cr due to impact of heavy rainfall

Chennai: Southern Petrochemicals Industries Corporation (SPIC) Ltd has recorded a net loss of Rs 29.18 crore during the January-March 2024 quarter, due to the impact of heavy flood and rain at its facility in Tuticorin, the company said.

The city-based agri-nutrient and fertiliser company registered a profit after tax of Rs 23.53 crore during the corresponding quarter last year.

The profit after tax for the financial year ending March 31, 2024 fell to Rs 87.91 crore from Rs 284.44 crore a year ago.

Commenting on the financial performance, SPIC Ltd Chairman Ashwin Muthiah said, "The financial results were impacted by various factors, including severe floods in December. Despite operational challenges, our ability to resume and normalise operations in a time-bound manner underscores our operational resilience."

He added, "Transitioning to natural gas as a raw material source was a significant step this year, and we are accelerating our focus towards sustainable manufacturing."

The total income during the quarter under review stood at Rs 132.46 crore, as against Rs 676.34 crore in the same period of last year. For the year ending March 31, 2024, the total income dropped to Rs 1,962.16 crore from Rs 2,849.45 crore a year ago.

The company's plant in Tuticorin was shut for 77 days due to "heavy floods and rain leading to a reduced turnover and net loss." The company had made claims with insurance companies for the 'Loss of Profit' and the claims will be recognised on a receipt basis, the statement said.

"As our CAPEX (capital expenditure) plans get implemented, we foresee capacity expansion and initiatives aimed at profitable growth in the future," Muthiah added.

The Board of Directors has recommended a dividend of Rs 1.50 per share (15 per cent) on equity capital for the year ending March 31, 2024.