Other income stood at Rs 1.59 crore (Rs 1.22 crore), depreciation Rs 1.24 crore (Rs 1.06 crore), provision for taxation Rs 3.54 crore (Rs 2.40 crore) and interest Rs 0.19 crore (Rs 0.21 crore).

A company release on Wednesday said that all business units maintained a positive growth trend over the previous period despite a slowdown in industrial growth. While the exports and textile chemicals business unit have achieved a significant increase in turnover, growth trends have been impressive in paper and masterbatches, the release adds.

During the period under review, the company introduced a new class of speciality reactive dyes mainly for the export market and a new range of finishing chemicals for realising specialeffects and value addition for cotton fabrics. Clariant has further strengthened its speciality chemicals range for the paper industry, the release said. The company's sustained focus on new products for different businesses continued and approximately 40 per cent of the total growth have come from new products.

Clariant continued its thrust in different areas of cost and working capital management which have continued to improved profitability performance during the period. Arising out of Clariant International's decision to retain the textile dyes business globally, the company has further intensified its market development efforts in this segment to provide the total solution packages to its customers.

INSIGHT
A creditable performance

Considering the depressed state of the economy and the speciality chemicals industry to which Clariant caters to, the company's results are laudable. What is even more creditable is that it has improved its operating margins at a time when prices ofmost chemicals are substantially low. Operating margins have improved from 7.45 per cent in the first half of 1997-98 to 8.39 per cent now.

Clariant has done particularly well in exports which have grown by 33 per cent. The textile dye business has improved by 12 per cent, while textile chemicals have shown a robust growth of 22 per cent. Importantly, 40 per cent of the growth has come from new products which highlights its strength in research to meet the requirements of the customers, and prospects for growth. Small wonder that the stock has outperformed the Sensex.