However, for the cumulative nine months, the drop in net profit was proportional to the fall in income. For the nine months, the turnover declined to Rs 308.46 crore from Rs 329.56 crore, while net profit slipped to Rs 16.48 crore from Rs 20.56 crore.

The company managed to reduce the extent of losses through some stringent cost-control measures as total expenditure declined from Rs 122.43 crore in the third quarter last year to Rs 92.55 crore.

According to a company press release, tight control on working capital has yielded good results in an otherwise slack offtake. Inventory and rceivables, even after adjusting for lower cumulative volumes this year, have been maintained at lower levels.

The company hassaid that while demand for the last quarter is expected to be slow in picking up, efforts are on to develop export markets while the cogeneration business is expected to have major impact in the next financial year.

The companya's order backlog stood at Rs 165 crore at the end of the third quarter, while exports have maintained its healthy rate of growth and cumulative exports for the nine months increased 23 per cent, the same rate as in the corresponding period of last year.

The company has not provided for any tax, which will be provided for at the end of the year, the press release stated.