SFL's net profit after tax was Rs 29.54 crore, a substantial jump of 15.7 per cent from Rs 25.53 crore. The company has, therefore, rewarded shareholders by stepping up the dividend to 70 per cent for the year as compared to 50 per cent paid last year.

According to audited financial results released by the company, sales amounted to Rs 343.96 crore for the year under review, up 5.45 per cent from Rs 326.18 crore recorded in the previous year.

The improvement has come about in the face of stiff competition, especially in exports which showed a substantial jump of 23 per cent to Rs 57.80 crore compared to Rs 46.94 crore in the previous year.

SFL's policy of consciously increasing exports, even while retaining leadership in the domestic market, not only as a vehiclefor future growth but also for insulating it against wild fluctuations in the domestic market has contributed to the better performance, it is said.

The improvement has come despite recessionary conditions in the automobile sector which resulted in decline in sales for major original equipment manufacturers with customers exerting continuous pressure on prices even while demanding better service and just-in-time deliveries.

Operating expenses were Rs 287.60 crore compared to Rs 270.67 crore in the previous year. The increase in operating expenses is attributed to higher employee cost due to wage settlements, power tariff hikes and central/state budgetary levies.

Gross profit before interest, depreciation and provision for taxation improved marginally to Rs 58.16 crore during the year as against Rs 57.08 crore in the previous year.

One major reason for improved bottomline is that there has been a significant reduction of over 20 per cent in interest charges at Rs 15.06 crore from Rs 18.92crore.

Deprecaition was higher at Rs 10.26 crore (Rs 9.52 crore) while provision for taxation was Rs 3.30 crore against Rs 3.10 crore in the previous year.

Earnings per share for 1998-99 amounted to Rs 28.92 compared to Rs 25.00 in the previous year.

Dividend declared at 70 per cent for the year will absorb Rs 7.15 crore. The company has transferred a sum of Rs 23 crore to the general reserve. Total reserves including revaluation reserves is higher at Rs 138.33 crore (Rs 116.75 crore). Paid up equity share capital stands at Rs 10.21 crore.

SFL received the prestigious TPM excellence award from Japan Institute of Plant Maintenance during the year. It has won the coveted `GM Supplier of the Year' award from General Motors, US, for the third consecutive year.