Operating, gross and net margin of the company improved to 14.5 per cent, 11.8 per cent and 5.7 per cent, respectively for the quarter ended June, 2000 as against 9.4 per cent, 5.4 and 0.1 in the corresponding period.

The improvement in the margins was attributed to the reduction in raw material cost and staff cost as a percentage of sales over its corresponding period.

However, other cost increased by 33 per cent to Rs 32.68 crore from Rs 24.46 crore in the corresponding period. Interest and depreciation cost declined marginally over its corresponding quarter to Rs 2.42 crore and Rs 4.02 crore respectively.

Dividend income increased to Rs 3.73 crore from Rs 21 lakh for the same period. The increase in the dividend income was on account of companies and mutual funds declaring their dividends in this quarter instead of the traditional second quarter.

The company also said the provision for diminution in the value of investments and doubtful loans and advances as might be necessary would be considered at the time of account preparation for the present fiscal.