Chennai, Jan 24 : Despite a sharp fall in turnover, the Chennai-based Southern Petrochemical Industries Corporation Ltd (Spic), the AC Muthiah flagship company, has managed to spruce up its profit, thanks to the sales proceeds of some of its non-core business during the third quarter ended December 31, 2000. The company on Wednesday reported a whopping 511 per cent jump in net profit to Rs 31.90 crore, compared to a paltry Rs 5.22 crore netted during the same period last year, according to a company release issued here.However, the turnover took a severe beating and was down by nearly 34 per cent to Rs 571.78 crore from Rs 882.25 crore during the same period last year.
But what helped the company to show a robust growth in profit is the addition of sales proceeds of its seed division, to the tune of Rs 73 crore to its income from other sources, analysts here said. The other income of the company jumped to nearly Rs 78 crore during the period. The interest burden on the company also went up to Rs 50.50 crore (Rs 47.97 crore), but the depreciation was down to Rs 10.07 crore (Rs 14.02 crore) during the period. The company has, however, made no provision for taxation and said that would be considered in the year-end.
The group chairman AC Muthiah went on record the other day, saying that the company as part of its revamp plan is eyeing a business of over Rs 10,000 crore and as part of it, Spic is withdrawing from its non-core businesses besides bringing all of the company under one roof.
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
