Total operational turnover rose by 20 per cent to Rs 939.87 crore from Rs 780.38 crore, with 79 per cent of the turnover coming from fertilisers. The sales from fertiliser is by way of the retention price support from the government.

However, tax payout increased by 198 per cent to Rs 29 crore in the latest year from Rs 9.75 crore, and extraordinary items claimed Rs 2.51 crore. This left a profit after tax and extraordinary items of Rs 37.29 crore, a marginal increase over the previous yeConsidering other income of Rs 57.72 crore (Rs 50.22 crore the previous year),total turnover was higher by 18.69 per cent at Rs 959.78 crore against Rs 808.65 crore in 1996-97.

Fertilisers contributed Rs 745 crore to total operational turnover for 1997-98 against Rs 629 crore in 1996-97. Income from tea increased to Rs 194 crore in 1997-98 against Rs 161 crore in the previous year.

The Chand Chhap Fertilizers & Chemicals Ltd, the unit that Duncans bought from ICI India Ltd, is operating at 106 per cent of the rated capacity.

The extraordinary expenditure of Rs 2.51 crore in 1997-98 is the first in recent years. Interest burden rose marginally to Rs 57.72 crore in 1997-98 against Rs 50.22 crore in 1996-97. The company said this is due to the increase in sales turnover in 1997-98.

INSIGHT

Good show, but bad exposure

Duncans Industries' performance for 1997-98 has been impressive, and good markets for both tea and urea have helped. Higher prices for tea have helped to boost margins. Higher profits have come in spite of lower "other income", higher interestpayments and depreciation, and a very high increase in tax provisions.

However, this improved performance has to be set off against Duncan's exposure to loss-making group companies, of which Andhra Cements alone has accumulated losses of Rs 243 crore.