Zuari Agro Chemicals profit down 91% in Q3 FY2016

Indian agrochemical company Zuari Agro Chemicals recently reported a 91 per cent fall in net profit at Rs 1.60 crore for the third quarter of FY2016 ended 31 December, 2015, due to a rise in finance cost and a fall in income.

The company had clocked a net profit of Rs 17.13 crore for the corresponding period a year ago.

Income from operations during October-December quarter of the current financial year declined to Rs 1,105.11 crore, as against Rs 1,416.28 crore a year ago.

During the third quarter, finance cost rose to Rs 67.15 crore from Rs 48.05 crore in the year-ago period.

Urea and ammonia plants of the company have been shut down for annual maintenance from January 26.

During the quarter, the company purchased 50 per cent of the equity shares held by RotemAmfert Negev Ltd in Zuari Rotem Speciality Fertilisers, a joint venture company, for Rs 13.32 crore.

The board also approved the merger of subsidiaries Zuari Agri Science, Zuari Fertilisers and Chemicals Ltd and Zuari Speciality Fertilisers with the company effective from April 1, 2015.