The turnover during 1998-99 was higher at Rs 2,381.46 crore compared to Rs 2,060.97 crore in 1997-98 - an increase of 16 per cent. The fertiliser division showed an improved sales of Rs 2,098 crore compared to Rs 1,731 crore last year. SPIC-SMO's sales was Rs 71.42 crore (Rs 41.73 crore). The company during the year bagged the Rs 202 crore maintenance contract for Mina Abdullah Refinery for a period of five years.

The pharmaceutical andheavy chemicals divisions continued to do badly on account of poor realisations. Speaking to the media, vice-chairman and president, AC Muthiah said that the company was going into formulations. It was looking at various derivatives and the pharmaceutical division would achieve cash profit next year. A captive plant is being planned in a bid to reduce the power cost of the heavy chemicals unit, he added.

The overall increase in turnover could not be translated into profits due to shut down of ammonia and urea plants for maintenance for almost two months during the year. The operating profit was Rs 263.08 crore marginally higher than Rs 259.40 crore posted in the previous year but the margins at opera-ting level declined from 12.6 per cent to 11 per cent.

Interest costs were higher at Rs 159.81 crore (Rs 119.24 crore). Muthiah attributed the increase in interest cost to inordinate delay on the part of the government in releasing the DAP subsidy which at a particular point of time touched Rs 350 crore. Thecompany, he added, had reduced by about three per cent through restructuring of debt.

A dividend of Rs 2.50 per share has been declared compared to Rs 3 per share in the previous year.

On the prospects for the year 1999-2000, Muthiah said that the company could double the turnover as demand and prices of Pen-G, caustic soda and other chemical products manufactured by the company are looking up.