IPCL Q3 net profit up 40% to Rs 405 crore

16-Jan-07

Better productivity and reduction in costs have spurred a 40% increase in Q3 net profits of Indian Petrochemicals Corporation's (IPCL) Q3. Net profit spiked to Rs 405 crore from Rs 289 crore in the corresponding period last year. Interestingly, net turnover for the quarter grew barely 9% to touch Rs 3,056 crore (up from Rs 2,800 crore). Net profit for the 9 month period increased by 20% to Rs 1,014 crore compared with Rs 843 crore in the corresponding previous period and net turnover grew to Rs 9,122 crore (up from Rs 8,009 crore). Production volumes of polymers PP, PE, PVC was 8,26,000 tons, 7,09,000 tons and 2,61,000 tons, respectively. Exports of manufactured products decreased by 15% to Rs 1,075 crore compared with Rs 1,266 crore for the corresponding previous period. Production volume saw a decline during the nine months from 4.49 million tons to 4.29 million tons due to the floods in Gujarat in August 2006 that limited availability of gas feedstock. The floods also affected ethylene production by over 6000 ton, and resulted in an additional cost due to usage of imported propane to sustain regular production at Gandhar complex. Ethylene cracker operating rates continued to be high globally in the three quarters of this fiscal due to a sustained demand and lack of new capacities. Q3 witnessed the prices of polymers and mono ethylene glycol (MEG) dipping due to a fall in crude oil prices, and recovering later in the quarter.