A company release said that profits will be under pressure in the fourth quarter owing to an expected rise in the prices of raw materials. It said that the continued focus on the core chocolate business has paid dividends in the market place and the financial results are in line with expectations.Operating profit stood at Rs 46.47 crore in the nine-month period. Operating profit margins and net profit margins during the period were 14.37 per cent and 6.29 per cent, respectively.

The cumulative depreciation for the January to October period stood at Rs 14.74 crore (Rs 13.69 crore for the entire previous year ending January 3), whilethat for the provision for taxation for the same period stood at Rs 8.45 crore (against Rs 8.2 crore for the whole previous fiscal).

The Cadbury India scrip at the Bombay Stock Exchange (BSE) rose by Rs 2 to touch Rs 374.75 per share on Tuesday from its previous close of Rs 372.75 per share.

The company posted a net profit and net sales of Rs 18.57 crore and Rs 354.14 crore in the year ended January 3, 1998. Thus the company's net profit has already surpassed this level nine months, analysts pointed out, and this has been achieved on sales (Rs 323.36 crore) that is yet to cross last full year's figure of Rs 354.14 crore.

Cadbury India Ltd had suffered an 8.6 per cent drop in net profit to Rs 18.57 crore in the financial year ended December 31, 1997, as against Rs 20.32 crore during the previous year. Net sales, however, had increased by 12.8 per cent to Rs 354.14 crore from Rs 313.88 crore.

Despite a fall in net profit, the company had maintained its dividend rate at Rs 3.50 per share (pro-rata onrights share issued during 1997).