RCF sale of industrial products cross Rs 100cr-mark in Apr-May

Despite COVID-19 crisis, state-owned Rashtriya Chemicals Fertilisers (RCF) has crossed Rs 100 crore sales-mark in its industrial products in the first two months of the current fiscal, the Fertiliser Ministry said on Saturday. "The company's operations have been running successfully. In the ongoing current COVID-19 pandemic, the company is fully geared up to face the upcoming challenges and ready to capitalise on the opportunities coming its way," the ministry said.

The RCF's major industrial products are Ammonia, Ammonium Nitrate, Ammonium Bi-carbonate, Methyl Amines, Nitric Acid, Dilute Nitric Acid, Argon, Formic Acid, Di-Methyl Formamide, Di-Methyl Acetamide and Sodium Nitrate. For instance, Ammonia is used as a refrigerant for nitriding of steel, rocket fuel and pharmaceuticals, while that of Ammonium Nitrate in explosives for coal mining and Ammonium Bi-Carbonate for bakery products and tanneries.

Methyl Amines is used in pesticides, dyestuff, and pharmaceuticals, while Dilute Nitric Acid in jewellery and propellant and Formic Acid is used in the rubber and leather industry. Di-Methyl Formamide - as a solvent for fibres, spandex, polyamides.

In the statement, the ministry said that RCF standalone net profit rose by 49 per cent to Rs 208.15 crore in 2019-20 fiscal from Rs 139.17 crore in the previous year. The revenue from operations rose 9 per cent to Rs 9,698 crore in 2019-20, the highest since inception.

"Despite various challenges being faced by the company, the financial performance for the current year has been better as compared to the previous year," it said. Fertiliser industry got some relief as the government approved vintage allowance of Rs 150 per tonne to certain plants (which were 30 years old plus converted to gas) and additional fixed cost of Rs 350 per tonne of urea as per Modified New Pricing Scheme (NPS) III which was long-awaited, it added.