Southern Petrochemical Industries Corporation Ltd (SPIC), one of India’s pioneering agri-nutrient and fertilizer companies, recently announced its annual audited results for FY 2022-23. In the last quarter of FY23, the company registered an income of INR 676.33 crore and net profit after tax of INR 23.53 crore compared to an income of INR 284.47 crores and net profit after tax of INR 7.68 crores during the corresponding quarter of the previous year. In the year ended March 2023, the company earned a total income of INR 2849.45 crore compared to INR 1898.31 crore during the previous year. During the year, the company recorded a net profit after tax of INR 284.44 crore vis-a-vis net profit after tax of INR 140.43 crore in the previous year. The company announced a dividend of 15 percent on Equity Capital.

The Indian fertilizer sector is projected to grow at a steady rate of 4.7 percent annually from 2023 to 2028. This growth stems from several factors, such as the rising demand for food production, advancements in agricultural practices, and supportive government policies. There are several opportunities in the current fiscal year that will result in the progress of India’s fertilizer sector. One such opportunity is the PM Pranam scheme, which was launched in February this year. The scheme encourages investments in research for the sustainable development of agriculture. Additionally, in May 2023, the Indian Gas Exchange (IGX) introduced a specialized contract for fertilizer companies. The contract facilitates more flexible payment terms, enabling easier access to natural gas for buyers in the fertilizer sector. SPIC stands to benefit from these developments.

Despite these opportunities, it is important to note that fertilizer prices remain high due to global factors, such as reduced production and increased logistics costs, particularly due to the situation in Ukraine. To address this, the government has recently approved a subsidy of INR 1.08 lakh crore for the ongoing kharif and monsoon season.

Stating that the company’s good annual performance including the last quarter despite various macro-economic challenges demonstrates its robust fundamentals, Ashwin Muthiah, Chairman, SPIC & Founder Chairman, AM International, Singapore, added, “The significant improvement in both the topline and bottom line is the result of our continuous focus on cost and operational efficiencies. I congratulate the team on this wonderful performance. As a company, we are aligned with the Indian government's policy of Atmanirbhar Bharat and working towards increasing the domestic fertilizer production capacity. Our ESG-oriented approach, especially towards sourcing natural gas as a raw material, is giving us positive results.”

For more information: www.spic.in