After the fertilizer minister's approval to hike urea prices by 10%, fertilizer stocks had a fair run at the market. In an interview with CNBC-TV18, Kapil Mehan, MD of Coromandel International said that the company expects healthy demand and consequently good volumes in the coming season.

Mehan also informed that the company has entered a contract for phosphoric acid valued at $850. The company also expects to improve production levels by 30-40%, added Mehan.

Talking about the fertilizer industry at large, Mehan said that it is high time for India to expand its urea capacities. He also stressed on the fact that urea price cap is a bigger concern for the industry. The need for bringing urea prices under nutrient based subsidy system is also important, explained Mehan.

Going forward, Mehan expects the company's production levels to be much better than the previous year. He is also hoping for healthy demand and good volumes in the coming season. 

Below is the edited transcript of the interview on CNBC-TV18. Also watch the accompanying video.

Q: Just give us an outlook in terms of FY13 fertilizer volumes and prices, what do you expect for Coromandel?

A: I think with the monsoon predictions now being normal we expect good sowings to take place during the coming season and that should lead to healthy demand. It should also reflect in the volumes of fertilizer companies including Coromandel.

Q: People were talking about the domestic markets being over supplied at this point in time. What are the inventory levels in the industry?

A: I think there are two levels of inventories that we have today. One is with the industry and one is with the trade. I think we have inventory levels which coupled with the domestic production of the first three months. That should suffice us to take us till about middle of July or so, which is really the peak of kharif sowing season.

The estimates are somewhere between 4-5 million tonnes of phosphetic and potassic fertilizers which are available with the dealers and with the companies. That should suffice us to see us through till about middle of July including domestic production.

Q3: How is the Sabero acquisition doing at this point in time and what would your guidance be for FY13?

A: In Sabero, we have made investments in improving the environment management facilities as well as certain utilities etc and that is on track. We have started commissioning those facilities one by one and that should reflect.

We are already seeing signs of pick up in the production levels and going forward we should start utilizing the capacity in a much better manner than what we have done during the last 12-18 months. As a policy, we don't give any guidance but we expect production levels to be much better than the past.

Q: When you say much better it would be what ?" 15% higher, 20% higher. On production levels can you give guidance?

A: We expect production to be in the range of 30-40% higher than what we have seen in the recent past.

Q: Is there any concern with regards to phosphoric acid availability and in terms of negotiations with suppliers at this point? Can you take us through any challenges if they exist?

A: We have finalized arrangement for our phosphoric acid with one of the key suppliers at USD 850 per tonne and other negotiations are going on. We have our own production capacity also to produce phosphoric acid from rock phosphate and sulphur. Those plants are running to full capacity.

We have sufficient stocks of raw material available with us, bought earlier as well as being bought now. We do not foresee any problem on that. The only disruption which we foresee is from Tunisia, where there is a little bit of disruption in supply of rock phosphate to the production units. There maybe some slip-ups so that's the only challenge that we have in the foreseeable two-three months period. Otherwise things are normal.

Q: I know this is not something you would be concerned about; the new urea investment policy is not a matter of concern for you but as an industry insider and knowing the dynamics of the importance of gas, its price and it's linking to the ultimate subsidy and to the price what is the sense? Is that policy good enough to ensure that investment is kick started?

A: I think from whatever has appeared in the press and whatever we know through our discussions with ministry officials, the policy formulation seems to be good. It is about high time that India creates more capacity for urea manufacturing because that's the only fertilizer for which indigenous raw material is at least available.

Otherwise, the larger issue with urea is around its pricing because its price still continues to be under administered price mechanism, whereby it is artificially capped at a very low level. That has risk of disturbing the balance use of fertilizers that we have been advocating.

The government also has been advocating all the promotions, farmer education etc have been concentrating on balance use of fertilizers. It's high time that the urea prices are also brought under nutrient based subsidy system so that they reflect what the market prices and costs are.

  

Sub : ISIN Nos.

 

 

Trading Members of the Exchange are hereby informed that the following ISIN is allotted to the under mentioned securities:

 

           

Sr. No.	Scrip Name	Security Type	Scrip Code	ISIN
1	Sunil Industries Ltd	Equity Shares	521232	INE124M01015

 

 

Trading in the securities of the Companies are currently under suspension.

 

 

 

 

Arpita Joshi

Deputy Manager

Dept. of Corporate Services

 

 

 

May 18, 2012

In continuation of Exchange Notice No: 20111124-7 dated November 24, 2011, the trading members are hereby informed that Jindal Poly Films Limited. (Scrip code: 500227) will  discontinue with the scheme of buyback of its fully paid-up equity shares of face value of Rs.10/- each from the Open Market through the trading mechanism of the Exchange.

Accordingly, the scheme of buyback of shares of Jindal Poly Films Limited will not be available in Physical as well as Demat form and trading under the following scrip code for physical mode will be suspended:

Scrip Code	Name Of the Securities	Suspended From
533094	Jindal Poly Films Limited	21/05/2012

 

Hetal Kotak

Asst. General Manager

Department of Corporate Services

May 18, 2012

Sub : Change in group of Equity shares of Oswal Agro Mills Ltd (Scrip Code:500317)

In continuation to the Exchange’s Notice No. 20120502-9 dated May 2, 2012, trading members are hereby informed that the trading in the equity shares of Oswal Agro Mills Ltd (Scrip Code:500317) shall be included under ‘B’ group with effect from Tuesday, May 22, 2012.

In case the trading members require any clarification on the subject matter of the notice, they may please contact the undersigned on Tel. No. 022 – 2272 8384.

 

 

Hetal Kotak                                                                Arpita Joshi

Asst. General Manager                                               Dy. Manager

 

May 18, 2012

A solid performance by State Bank of India, India's biggest lender, lifted sentiments in markets Friday. The BSE Sensex traded off the day's low, down 99 points or 0.62% at 15,971 while the Nifty index traded 31 points lower at 4,839.

SBI's net profit rose to Rs 4,050 crore in the March quarter. The asset quality improved and came as a major relief to investors. The stock soared over 3% and was the biggest gainer on the Nifty index.

The banking index (0.35%) bounced back into the green. Most other groups of stocks continued to trade lower though.

On the Nifty index, 14 of the 50 stocks traded in the green. Private lender Kotak Mahindra (1.14%) and power utility major NTPC (1%) were the other big gainers on the Nifty.

Earlier, the Sensex had fallen over 250 points while the Nifty slipped below the 4,800 mark on the back of weak global stocks.

Sub:  Daily Settlement Program for May 21, 2012

A.     Trading members and custodians should:

 

Ø      maintain clear balance in their Bank Accounts / Depository Pool Accounts for funds / securities at 10:50 a.m. for pay-in obligation pertaining to Sett. No.DR-034/2012-13. The cut-off timings for pay-in of securities at the Depositories should be noted. Physical securities to be delivered in the Clearing House from 9:30 a.m. to 10:30 a.m

 

Ø      maintain sufficient balance in their bank accounts for any undelivered securities. (Refer Notice Nos. 20030319-14, 20030328-8, 20030721-9 dated March 19, March 28, and July 21, 2003 respectively).

 

Ø      maintain sufficient balance in their Bank Accounts at 09:30 a.m. towards pay-in of funds for auction of Sett.No.DR-033/12-13.

 

B.     Patawat Arbitration programme for physical securities delivered in Rolling Settlement Nos. DR-031/12-13, DR-032/12-13 & DR-033/2012-13:

 

Monday	Sett.No.DR-031/2012-2013
21.05.2012	Arbitration Awards for invalid rectification to be obtained from officials of the Bad Delivery Cell	11:30 a.m. to 12:30 p.m.
	Securities to be lodged with the clearing house upto	1:00 p.m.
	Sett.No.DR-032/2012-2013
	Trading members and institutions to submit rectified securities, confirmation forms and invalid objections in the clearing house	1:00 p.m. to     2:00 p.m.
	Rectified securities will be delivered to the receiving trading members	3:00 p.m. to 4:00 p.m.
	Sett.No.DR-033/2012-2013
	Patawat Arbitration session: Arbitration awards to be obtained from officials of the Bad Delivery Cell	10:30 a.m. to 11:30 a.m.
	Securities under objection to be submitted in the Clearing House	11:00 a.m. to 12:00 noon
	The delivering trading members to collect such securities under objection from the clearing house	2:00 p.m. to 3:00 p.m.
	Arbitration awards for invalid objection to be obtained from members of the Arbitration Review Committee	5:00 p.m. to 5:30 p.m.
Tuesday	Sett.No.DR-032/2012-2013
22.05.2012	Arbitration Awards for invalid rectification to be obtained from officials of the Bad Delivery Cell	11:30 a.m. to 12:30 p.m.
	Securities to be lodged with the clearing house upto	1:00 p.m.
	Sett.No.DR-033/2012-2013
	Trading members and institutions to submit rectified securities, confirmation forms and invalid objections in the clearing house	1:00 p.m. to     2:00 p.m.
	Rectified securities will be delivered to the receiving trading members	3:00 p.m. to 4:00 p.m.
Wednesday	Sett.No.DR-033/2012-2013
23.05.2012	Arbitration Awards for invalid rectification to be obtained from officials of the Bad Delivery Cell	11:30 a.m. to 12:30 p.m.
	Securities to be lodged with the clearing house upto	1:00 p.m.

 

                                                  For Indian Clearing Corporation Ltd.

 

 

Date: Friday, May 18, 2012                                          Asst. General Manager

 

Agencies

Posted: Friday, May 18, 2012 at 1300 hrs IST

: State Bank of India (SBI), the country's biggest lender, beat market expectations with a sharp rise in its fourth-quarter net profit, mainly due to a lower base last year and strong demand for loans.

SBI net profit up at Rs 4,050.27 crore in fourth quarter, 2011-12, as against Rs 20.88 crore in Q4 of previous fiscal.

SBI, in which the government is a majority shareholder, reported a net profit of 40.50 billion rupees ($738 million) for the three months to March, up from 209 million rupees a year earlier. The bank's year-ago profit was impacted by sharply higher provisions for bad loans.

The bank was expected to post a net profit of 36 billion rupees.

SBI, which has given loans to some of India's most troubled borrowers including Kingfisher Airlines, said its net non-performing assets (NPAs) were at 1.82 percent of total loans at end of March compared with 1.63 percent a year earlier.

The

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