SPIC Chairman Ashwin Muthiah Shares Insights on Financial Results and Strategic Initiatives

Southern Petrochemical Industries Corporation Ltd. (SPIC), one of India's pioneering agri-nutrient and fertilizer companies, announced its annual audited results for FY 2023-24. In the last quarter of FY24, the Company registered an income of INR 132.46 crores and net loss after tax of INR (29.18) crores compared to an income of INR 676.34 crores and net profit after tax of INR 23.53 crores during the corresponding quarter of the previous year.

Due to heavy rain and flooding in Tuticorin, the Company’s plant at Tuticorin was shut down for 77 days in the last quarter, which led to reduced turnover & net loss in the quarter. SPIC has made claims with Insurance companies for the ‘Loss of Profit’ and the claims will be recognized on receipt basis.

In the year ended March 2024, the Company earned a total income of INR 1962.16 crores compared to INR 2849.45 crores during the previous year. During the year, the Company recorded a net profit after tax of INR 87.91 crores vis-a-vis net profit after tax of INR 284.44 crores in the previous year.

The Board of Directors have recommended a dividend of 15 % (Rs.1.50 per share) on Equity Capital.

"The financial results were impacted by various factors, including severe floods in December. Despite operational challenges, our ability to resume and normalize operations in a time-bound manner underscores our operational resilience. Transitioning to natural gas as a raw material source was a significant step this year, and we're accelerating our focus towards sustainable manufacturing and carbon-neutral goals. As our CAPEX plans get implemented, we foresee capacity expansion and initiatives aimed at profitable growth in the future. We are committed to the Government of India's Atmanirbhar Bharat program and green fertilizer focus, continuing with our aim to serve our farmer community," commented Ashwin Muthiah, Chairman-SPIC & Founder Chairman, AM International, Singapore.

Fertilizer Sector Overview:

In 2023, India saw a significant 21.3% drop in urea imports to 7.41 million tonnes, according to S&P Global Commodity Insights. This decline was due to increased domestic production, which rose by 13.4% to 31.11 million tonnes compared to the previous year. Urea availability and sales in 2023 continued to rise steadily, with availability increasing by 3.65% to 41.16 million tonnes and sales by 3.25% to 38.11 million tonnes.

In a bid to boost crop yields and meet the needs of various plantings, the Ministry of Agriculture and Farmers Welfare recently updated the Fertiliser Control Order of 1985. This revision includes a wider variety of fertiliser options, giving farmers more tools to address unique soil problems and ensure healthier plants.