Latest News | NFL Posts Rs 181.06 Cr Net Loss in FY20

New Delhi, Jul 30 (PTI) State-owned National Fertilizers Ltd (NFL) on Thursday reported a consolidated net loss of Rs 181.06 crore in 2019-20 fiscal due to reversal of subsidy amount accrued between 2014 and 2019.

The company had posted a net profit of Rs 293.97 crore in the previous financial year, according to a regulatory filing.

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Net income rose to Rs 13,135.36 crore during 2019-20 from Rs 12,429.13 crore in 2018-19.

NFL said it posted a loss in the year as the minimum fixed cost subsidy of Rs 388.85 crore, accrued during April 2014 to March 2019 period, was reversed.

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"...consequent to deletion of provision of minimum fixed cost retrospectively w.e.f. 02-4-2014 vide Department of Fertilizer Policy letter dated 30-03-2020 under Modified New Pricing Scheme-III dated 02-04- 2014, the said subsidy of Rs 388.85 crore has been reversed during the current period," it said in the filing.

The company said "adverse impact" is anticipated on company's business in 2020-21 due to restriction on manpower movement and delay in commissioning of energy reduction projects due to lesser availability of contract labour at site and delay in visit of foreign experts for commissioning activities.

Besides, rationalisation of government expenditure may result in delayed settlement of outstanding subsidies straining liquidity and working capital, the company said.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)