Phillips Carbon to pay 15% dividend despite lower PAT

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Tuesday, April 28, 1998

Phillips Carbon to pay 15% dividend despite lower PAT

Our Corporate Bureau

Calcutta, April 27: Phillips Carbon Black Ltd (PCBL), an RPG group company, proposes to pay a 15 per cent dividend for the year to September 30, 1997, despite a lower profit after taxation (PAT) at Rs 833.06 lakh. The decline in profits reflects the difficult patch the country's carbon black industry is going through. However, PCBL has reported higher sales at Rs 282.25 crore (Rs 253 crore in the previous year). Profit before taxation during the year went down to Rs 1128.06 lakh from Rs 2610.44 lakh posted in the previous year. After providing Rs 595 lakh for taxation, its PAT amounted to Rs 833.06 lakh (Rs 2170.44 lakh in the previous year). The profit available for appropriation stood at Rs 789.92 lakh as against Rs 2139.26 lakh in the previous year.

The directors on Monday recommended a 15 per cent dividend (30 per cent in the previous year) which, payable on the expanded capital following the amalgamation of Carbon & Chemicals India Ltd (Cacil), will absorb Rs 257.07 lakh as against Rs 402 lakh in theprevious year.

All legal formalities having been complied with, the amalgamation with Cacil takes effect from April 1, 1997. As already known, one fully paid-up equity share of Rs 10 of PCBL will be issued for every three fully paid-up Cacil equity shares of Rs 10 each.

According to the amalgamation scheme, the erstwhile Cacil shareholders will be entitled to the proposed dividend on a pro-rata basis for the period from April 1, 1997, to September 30, 1997. Following the amalgamation, PCBL joins the big league of top carbon black companies in the world, accounting for 55 per cent of the Indian carbon black capacity. The annual general meeting will be held in Calcutta on June 11, 1988.