I convey my best wishes and greetings to all my colleagues in FACT.
As we all know, we are passing through an extraordinary situation unlike earlier years due to Covid-19 pandemic. With the prolonged country-wide lockdown, global economic slowdown and associated disruption of demand and supply chains, the economy faces a protracted period of slowdown. The magnitude and speed of collapse in activity, that has followed the pandemic, is something that we have never ever experienced before in our lifetime..
Though this was a year of extreme economic challenges for the world, I am happy to say that our committed efforts put in last year has become a milestone in the history of FACT. FACT was able to surpass its targets and could showcase the highest financial performance of the company in the recent years. I am really happy to share with you that FACT could maintain outstanding performance for the current year 2020-21, creating new records in production and sales of Factamfos and Ammonium Sulphate and showing excellent results in the financial performance.
We have made a profit of ₹136 crores during the third quarter of 2020-21 and the net profit for April - December period ₹202 crores. This is an all-time high profit from operation reported by the company. For the current financial year till December, we have already crossed total fertilizer sales of one Million MT. The total fertilizer production during the FY crossed 8.2 Lakh MT till December. We imported 6 shipments of fertilizers during the financial year and have ordered for one more, which also will be a new record in the history of FACT.
The share price of the company had even touched new high of ₹125, the highest among all the fertilizer PSUs, making market capitalization of the company reaching over ₹6000 Cr.
Government of Kerala has refunded ₹40 Cr. against KVAT on RLNG consumed in 2017-18. In the Kerala Budget 2021, Hon'ble Finance Minister has announced a reduction of KVAT rate on RLNG from 14.5% to 5%. This may help us in improving our cash flow.
As you are aware, FACT has leveraged 481.79 acres of its land at Cochin Division to Government of Kerala and utilizing the consideration in Capex projects with a view to de-bottleneck existing facilities and expand the product base. Tenders floated for major Capex schemes like NP plant, Ammonia Storage, Ammonia barge, Storage tanks for Phosphoric Acid & Sulphuric Acid Tank at Cochin Division, etc. are at advance stages of finalization.
It is really appreciable that our company is emerging stronger and healthier and is scaling new heights. I do have full faith in our team work and dedication. We are bouncing back to the old glorious days moving towards a bright and prosperous future. I am confident that our ‘Winning Team’ will be achieving all-time high production and sales records during the financial year.
I am happy to say that with the support from all employees, we could achieve our overall performance targets.
My Best Wishes to all of you.
Chairman & Managing Director