Kribhco: Net worth rises, DBBT hiccups sink profit by 15%

The second largest producer of fertilizer in the country Kribhco held its Annual General Meeting posting a pre-tax profit of Rs 1.62.56 crore which is less by 15 percent compared to the last year. The loss in profit is not actual, said a top Kribhco official. It is due to lack of accrual of the DBT reimbursement which happens at the end of the year, he explained.

Welcoming the delegates who had come in hundreds from various parts of the county Kribhco MD Sambasiva Rao expounded at length on the challenges staring the fertilizer industry in the face. “The rise in dividend from 15 to 18 percent is due to better performance which is not being correctly represented due to delayed DBT reimbursement”, said the official.

The NCUI auditorium was brimming with a large number of delegates with hardly a seat left for any new comer. In his presidential speech while Dr Chandra Pal Singh Yadav expressed his gratitude to the delegates for coming in such a large number. The shortage of space almost forced even this correspondent to quit the auditorium. Luckily, one seat was made available to him in the name of media.

Announcing an 18 per cent dividend Kribhco Chairman said that despite challenges the fertilizer cooperative has done reasonably well this year. The net worth of the society has increased to Rs 3413 crore from Rs 3305 cr of the last year.

Chandra Pal also mentioned briefly about the change in the subsidy disbursement brought about this year. ”Earlier we would get subsidy as soon as urea would reach to the district headquarters but now the subsidies accrue after urea is sold to farmers through POS machines, said Yadav. “ As a result, a huge amount of subsidy bill could not be generated by the fertilizer companies by the year end and only a meager amount of subsidy was released by the govt. The outstanding dues posed severe challenges”, Chandra Pal underlined.

“Despite challenges Kribhco performed well in all the areas of operation be it production, financial or marketing. Hazira plant achieved its target. In addition Kribhco produced 5.14 lakh litre of Liquid Bio Fertilizer, 5455 thousand NM liquid Argon and 369 thousand quintals of certified seeds”, announced a proud Chairman.

Chandra Pal also informed that today Kribhco consists of 9467 co-op societies and the paid up share capital of the society was Rs 389.73 crore as on 31st March 2018.

The linking of subsidy with POS machines caused some teething problem in the beginning but it has led to digitization of member co-op societies, said the MD earlier. Urea is sold to farmers at one fourth of its cost while remaining 75% is given as subsidy to the farmers, Rao added.

Chandra Pal also touched upon several of Kribhco’s initiatives and narrated briefly about their achievements. Krishak Bharati Kendras, Kisan Suvidha Kendra, thousands of farmers meetings, adoption of 106 co-op societies, organizing health camps were some of them.

Coming to joint ventures and subsidiaries Kribhco Chairman said that while it received US $ 11.75 million as dividend from OMIFCO, its wholly owned subsidiary KFL sold 9.07 lakh MT urea. Kribhco Infrastructure Limited (KRIL) generated a revenue of Rs 142 crore, Yadav added.

Kribhco Chairman also listed the awards won by the co-op behemoth in the last financial year. Swachchata Award by GOI, award for the best video film and for cost management were some of the laurels.

Kribhco also distributed Sahakarita Vibhushan Award and Sahakarita Shiromani Award to Mahendra Kumar Nayak and Suresh Patel respectively on the occasion.