The company PAT at Rs. 164 crore is 40% higher than the previous year. The profit for the year before tax and extraordinary items of Rs. 276 crore was slightly higher than the corresponding figure for the previous year (Rs. 267 crore).

These results have been achieved in spite of the negative impacts of an earthquake, a fire and a reduction in allocations for fertiliser sales. An increased investment income during this year compared to the previous year helped to overcome the above negative impacts. Further, the directors considered it appropriate to provide Rs. 77 crore as a contingency for fertiliser revenues accounted in 1994-95 and 1995-96, which are higher than the provisional price. The board recommended the same dividend as the previous year i.e. Rs. 5/- per share.

With respect to operations of the year, the market share of the company in the soda ash market was maintained at 42% and soda ash price realizations sharply improved as the year progressed. Thus, a declining soda ash turnover trend was reversed. A record export of soda ash further helped a recovery. A major cost erosion drive during the second half resulted in significant cost savings. These continuing measures should bear fruit in the years ahead. One-time costs relating to reduced capital expenditure, stock valuations and sales outstandings have also been charged to the P&L account. With the sale of detergents being finalised and the decision to identify partners/buyers for the cement plant, the Mithapur operation will be increasingly very focused.

The operations at Mithapur are quickly returning to normalcy, and the soda ash plant is already operating at a capacity of about 60%. The damaged power turbines are expected to be brought back on line progressively from this month onwards.

Along with the rest of the fertiliser industry, the Babrala operations continue to face an uncertain fertiliser policy. However, the plant continued to perform as the most energy efficient plant in the country, but the profits were lower than the previous year due to reduced ECA allocation.

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