The board, which met here on Tuesday, recommended a dividend of Rs 2 per share of Rs 10, involving a payout of Rs 77 crore, for the year 1998-99, which is marginally higher than the 18 per cent it had paid the previous year.

The Rs 143.74 per cent net profit for the year as against the Rs 122 crore the previous year has been on account of the commissioning of an additional capacity of one million tonnes last year. The gross profit for the year works out to Rs 275.88 crore while the profit before tax was put at Rs 160.60 crore.

During the year, the share capital of the company increased from Rs 331.47 crore to Rs 352.04 crore due to the conversion of rupee loans to equity by the financial institutions and the allotmentof equity to promoters in exchange of warrants.

The company has issued 1,54,00,000 equity shares to financial institutions as per the loan agreement, while core promoters have increased their equity by 50,75,000 shares at a premium of Rs 5.71 per share.

For the year 1998-99, the company produced 12.13 lakh metric tonnes of urea as against 6.90 lakh tonnes in the last year. The enhanced capacity to one million tonnes of urea per annum from two plants made NFCL as the largest urea producer in south India, the company said.

The six million tonnes refinery project coming up at Cuddalore in Tamil Nadu is progressing as per schedule. It is expected to commence the commercial production by the last quarter of 2001. While the group's 1000mw power project at Mangalore is expected to reach financial closure by June 2000, the company stated.