Atul 97-98 sales slip 1 per cent to 381 crore

OUR INFRASTRUCTURE BUREAU

MUMBAI, Oct 1: Atul Ltd's sales fell by 1 per cent to Rs 381 crore in 1997-98 while profit before non-recurring income improved from a loss of Rs 5 crore to a profit of Rs 5 crore, according to a company statement issued here on Thursday.

Addressing shareholders at the annual general meeting of the company on September 29, managing director Sunil S Lalbhai said that difficulties threw the company's estimates of sales and profit into a state of disarray.

Lalbhai gave the following reasons for the company's lacklustre performance in 1997-98 and in the first quarter of the current year:

The company was and is forced to curtail sales to avoid the menace of bad debts and mounting overdues;

The company encountered problems, which it is overcoming, while establishing a new and more efficient distribution network;

The company has still not been able to suitably and successfully respond to competition from China;

The company is taking longer than anticipated to introduce newproducts, and;

The electricity generation from the company's newly commissioned turbine has not yet reached the projected level of capacity utilisation.

Lalbhai pointed out that against several odds, the company continued to decisively pursue its long- and short-term imperatives and took several decisions which included the establishment of Atul China, acquisition of the balance 35 per cent shares of Cibatul Ltd with an intent to merge, building excellence in marketing and implementing marginal investment programmes were the most important.

Compared with the same period last year, the sales in the current year were lower by 7 per cent at Rs 91 crore and gross loss was higher by Rs 70 lakh at Rs 4 crore. The second quarter sales, however, are likely to be higher at Rs 100 crore and the gross profit up at Rs 3.5 crore.

Lalbhai stated that barring unforeseen events, the current year performance is expected to be significantly better than last year, though it will not reflect the full impact of thecompany's strategic endeavour. Lalbhai also informed the shareholders of the sad demise on September 13 of company chairman Siddharth Kasturbhai.

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