The dividend announcement comes in the wake of a 38.27 per cent rise in net sales to Rs 405.13 crore (Rs 292.98 crore) and a 75.37 per cent jump in net profit to Rs 51.14 crore from Rs 29.16 crore in the previous year.

According to the company chairman and managing director CK Mehta, "Deepak Fertilisers has come through a tough phase in its history." The discriminatory fertiliser policy and the explosion in the methanol unit in 1992 had put a severe strain on the company. "The sharp improvement in performance is a culmination of various efficiency measures in the manufacturing and marketing of the company's products, over the last three years," the company said.

The ammonium nitrate unit of the company achieved 161 per cent capacity utilisation. CNA reached capacity utilisation of 118 per cent, andammonia 107 per cent.

Deepak Nitrate net at Rs 6 crore: Deepak Nitrite Ltd has posted a net profit of Rs 5.84 crore for the year ended March 1998. Net sales rose 23 per cent to Rs 153.69 crore from Rs 125.18 crore in the previous year.

The board of directors have proposed a dividend of Rs 1.8 per share. This will absorb Rs 1.14 crore, according to a company release.

Gross profit increased to Rs 12.63 crore from Rs 2.06 crore. Depreciation was marginally higher at Rs 4.92 crore, against Rs 4.24 crore. The provision for taxation was Rs 58 lakh, against nil last year.