Higher gas prices led to lower margins, says Rashtriya Chemicals & Fertilizers

However, some of the chemical plants were shut due to viability, he added.

Some exceptional items impacted the profit number for the quarter. The gratuity limit was increased from Rs 10 lakh to Rs 20 lakh along with wage revision and the company had to make one-time provision for this, he said.

Meanwhile, fertilser sector is being a controlled industry, the performance depends on government policies, IPP, foreign exchange and gas prices, said Dhatrak.

The receivables from the government has been lower this year, but the company has been getting subsidies regularly and government has provided special package on loan. The interest costs have also reduced due to better fund management, Dhatrak added.

State-owned Rashtriya Chemicals and Fertilizers currently produces more than 25 lakh tonne of fertilisers annually and the imports are reducing because of higher production.

With regards to ‘direct benefit transfer’ subsidy, he said it's available only when sales happen. So, it's likely to impact the working capital of the company, said Dhatrak.