IPCL net profit drops by 52 percent

MUMBAI, May 26: Indian Petrochemicals Corporation Ltd (IPCL) has reported a sharp 52 per cent drop in net profit at Rs 243.69 crore for the ...

MUMBAI, May 26: Indian Petrochemicals Corporation Ltd (IPCL) has reported a sharp 52 per cent drop in net profit at Rs 243.69 crore for the year-ended March 31, 1998 against Rs 510.20 crore during the same period in the previous year. The crash in net profit could have been worse, but for a Rs 35 crore rise in other income.

Though the company did not specify any reason for the drop in net profit, analysts attribute it to the general economic slowdown, depressed prices in the global petrochemical industry and huge rise in expenditure.

Net sales improved by 7 per cent at Rs 2,982.90 crore as compared with Rs 2,785.46 crore. Sales volumes crossed 1 million tonne. Operating profit margins have dipped to 22 per cent against 31 per cent in 1996-97. Earnings per share stood at Rs 9.82 (Rs 20.56). Gross profit has come down to Rs 509.73 crore from Rs 741.48 crore. Other income stood at Rs 112 crore as compared to Rs 77.76 crore during the last year. Expenditure has increased a substantial 21 per cent at Rs2,325.60 crore as compared with Rs 1917.57 crore. Interest has risen to Rs 259.57 crore (Rs 204.17 crore). Depreciation stood at Rs 237.35 crore(Rs 148.34 crore).

The company has provided Rs 28.69 crore for tax against Rs 82.94 crore the previous year. Paid up equity share capital was at Rs 249.05 crore against Rs 249.02 crore. Reserves and surplus stood at Rs 2779.21 crore as compared to Rs 2,644.31 crore. It plans to invest around Rs 26,000 crore in the next 12 years to reach a turnover of Rs 20,000 crore by 2010.

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