The company's net profit zoomed by 153 per cent to Rs 12.65 crore for the year ended March 31, 2000, as against a net profit of Rs 5 crore in the previous year. This is despite a 13.9 per cent dip in the company's income from operations to Rs 501.76 crore, compared to Rs 582 crore in the previous fiscal.

According to Balaji Industrial Corporation general manager (corporate finance) N Srikanth, the company is cutting down on its steel distribution activity and is concentrating on it's Indian made foreign liquor (IMFL) unit in Hyderabad. "Liquor manufacturing has higher margins, and pushes up overall profits," Srikanth said. The company is however continuing with production at its steel manufacturing unit in Nellore, Andhra Pradesh.

Besides low margins, recovery problems in trading activity has forced the company to cut down on traded items. Though this may temporarily result in a drop in sales, the company wound up its trading activity in an attempt to improve its bottomline, he added.

The company has also seen a corresponding reduction in the total expenditure for the fiscal ending 2000 at Rs 433.65 crore, as against Rs 522.52 crore. Its paid-up equity share capital increased to Rs 35.68 crore (Rs 23.79 crore) due to the issue of bonus shares in the ratio of 1:2. The board has recommended a dividend of five per cent for the year ended March 31, 2000.