MUMBAI, June 20: National Organic Chemical Industries Ltd (Nocil) has posted a 34.38 per cent drop in net profit to Rs 59.81 crore for the year ended March 31, 1997, compared with Rs 91.15 crore last year. Net sales fell marginally by 2.5 per cent to Rs 1,174.33 crore from Rs 1,204.33 crore. Dividend has been maintained at Rs 2.50 per share (inclusive of Re 1 per share interim dividend declared in November 1996).

Operating profits fell 32.7 per cent to Rs 113.59 crore (Rs 168.82 crore), while operating profit margins slumped to 9.6 per cent from 14 per cent. Its net profit margins dropped to 5 per cent from 7.5 per cent. Earnings per share were lower at Rs 4.88 (Rs 7.43), while provision for tax was lower at Rs 18.6 crore (Rs 56.40 crore). Depreciation was higher at Rs 15.78 crore (Rs 13.71 crore). According to a company release, the marginal decline in turnover was mainly due to lower sales volumes in the petrochemical and polymer divisions consequent to the maintenance shutdown in March this year and the steady decline in international prices of petrochemicals in the latter half of the year.

The margins were further affected because of a hike in the administered price of naphtha and other inputs in July 1996. The company said that it had initiated various measures to improve operational efficiencies. It noted that the sales volume of the rubber chemicals division touched Rs 169 crore. On its plans for a financial and technical joint venture, Nocil said that negotiations were on with foreign partners for participation in the modernisation and expansion project at Thane.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.