Zuari Agro Chemicals cultivates loss

Fertilisers and farm nutrients major, Zuari Agro posted its Q1FY17 results post market hours on September 9. Company has seen its bottom line turn negative as it posted a net loss of Rs 40.6 crore for the quarter ending June 30.

Net income has declined to Rs 978.3 crore in first quarter of 2016-17, from Rs 1555.7 crore a year ago, i.e representing a slide of 37 per cent on a yearly basis.  “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.

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.

In a separate exchange filing, the Goa based company informed of deferring its planned rights issue to some future date sighting volatility in the markets.

Shares of the company declined by 2.22 per cent to close at Rs 185.05 on NSE in anticipation of Q1 results on Friday.