In the first quarter of 1999-2000, net profit increased by 86 per cent to Rs 2.25 crore against Rs 1.21 crore in the same quarter last fiscal. Sales for the first quarter jumped 47 per cent to Rs 14.43 crore against Rs 9.80 crore last year.

Total expenditure increased to Rs 10.20 crore which was 37 per cent higher compared to Rs 7.44 crore in the first quarter of 1998-99 while other income and interest charges remained unchanged at Rs 0.03 crore and Rs 0.05 crore respectively.

Addressing shareholders, Roe said: "We believe that the ongoing investments in India will pay great dividends, particularly with the added engineering capabilities of Suez Lyonnaise des Eaux of France."

Suez Lyonnais has recently acquired 100 per cent stake in Nalco Chemicalsof US in a $4.1 billion deal. Roe said that the takeover process was not yet closed and he expected it to occur in the next 30-60 days. "The takeover by Suez is an extraordinarily powerful combination of their engineering capabilities and Nalco's expertise in water treatment and process chemicals."

Explaining the activities of Suez, Roe said that the acquirer was engaged primarily in infrastructure building related to water delivery and water treatment facilities; construction of power generation facilities; and building/owning waste management and waste recovery systems.