The packet tea and urea manufacturer posted a 46 per cent increase in profit before taxes to Rs 70.46 crore for 1997-98, against Rs 46.24 crore in 1996-97. Turnover rose to Rs 961.76 crore from Rs 808.65 crore in the previous year.

However, the profit after tax rose only marginally to Rs 37.95 crore from Rs 36.49 crore as against the big increase in PBT. The marginal increase in PAT is due to the Rs 30-crore provisioning for taxation and another Rs 2.51 crore towards extra-ordinary items.

The tax component in 1996-97 was Rs 9.75 crore, while there no provisioning required for extra-ordinary items.

The company said both fertiliser and tea contributed to the increase in turnover. Tea contributesaround 20 per cent of Duncans turnover, while the fertiliser accounts for the rest.

Both tea and urea are expected to continue on their growth path during 1998-99, the company said. Urea production will be further consolidated while intensification of tea production would be a major focus area, it said.

Duncans said a new tea factory dedicated to the Uttar Dinajpur crop will go on full steam during the current year. Duncans has also acquired managerial control of a plantation with 120 hectares under tea in West Bengal.

The company is considering the purchase of more tea gardens, according to the release.

First-quarter net at Rs 6 crore

Duncans Industries Ltd recorded a net profit of Rs 5.53 crore for the first three months to June 30, 1998. The company however did not declare the financial performance for the corresponding period of 1997-98. According to the unaudited first quarter results, the GP Goenka flagship posted a turnover of Rs 218.90 crore for the first quarter.