09 July 2001 00:00 [Source: ACN]
National Organic Chemical Industries Ltd (Nocil) recorded a close to 12-fold surge in net profit to Rs116.2m (US$2.47m) in the financial year 2000-01, from Rs9.9m in the previous year. Its operating profit also rose 8% to Rs606.6m from Rs557.3m. A 20% drop in interest payments contributed to the net profit surge.
Nocil was able to record increases in net and operating profits 'despite difficult market conditions' because 'the company was able to sell some of its products at premium prices', said a company official. The company also undertook various cost-cutting measures during the past year, he said.
Nocil's net sales, however, fell to Rs9.89bn from Rs9.96bn. The decline in net sales was attributed to the poor performance of Nocil's petrochemical division. The sales volumes and profitability of this division were affected by high naphtha prices and the two-month shutdown of its petrochemical complex at Thane, in Maharashtra.
However, the rubber chemicals division retained its leadership of the Indian market with a turnover of Rs2.2bn, the official said. The division achieved an export turnover of Rs560m, he added.
The plastic products division also posted a 15% growth in sales volume in the financial year 2000-01, the official said. 'The division was able to withstand severe competition by carrying out several process improvements for value-added products,' he added.
Meanwhile, Nocil is considering 'other options' for a 700 000 tonne/year cracker project, following the exit of Basell from the project, the company's executive director, finance, VR Gupte, said (see p25). He did not disclose what the other options are.
Basell and another foreign player were expected to take a combined 75% stake in the US$1.5bn project which was expected to come onstream towards end-2003.
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