ITC's net profit up at Rs. 792 crores, pays 75 p.c.

ITC has reported impressive results for the year ended March 31, 2000. Gross income has crossed the Rs. 8,000 crore mark to Rs. 8,069 crores from Rs. 7,700 crores. Net sales were higher by 9 per cent at Rs. 3,819.17 crores against Rs. 3,515.92 crores. Other income accounted for Rs. 116.31 crores (Rs. 121.79 crores).

With effective cost management, productivity improvements, continuous value addition to products and services, enhancement of quality to international standards and strengthening of brand equity, the gross profit, before depreciation and interest charges, was higher by 22.2 per cent at Rs. 1,460.03 crores against Rs. 1,194.41 crores. The net profit, after tax, was Rs. 792.44 crores against Rs. 623.42 crores. Interest charges were thus lower at Rs. 112.55 crores (Rs. 154.09 crores).

The board has recommended a higher dividend of 75 per cent for 1999-2000 against 55 per cent previously. The amount required, including dividend tax, is Rs. 224.55 crores (Rs. 149.83 crores).

The provision for depreciation is Rs. 118.58 crores (Rs. 102.29 crores) and taxation Rs. 436.51 crores (Rs. 314.61 crores). After making adjustments, the transfer to general reserve is Rs. 600 crores (Rs. 400 crores), debenture redemption reserve Rs. 17.50 crores (Rs. 48.75 crores). Release from debenture redemption reserve was Rs. 58.33 crores (Rs. 61.48 crores).

ITC group export turnover and foreign exchange earnings were Rs. 836 crores against Rs. 772 crores. Pursuant to its strategy of completing the ITC Welcomgroup chain, ITC's investments in its hotel business are progressing on schedule.

Carborundum Universal

Carborundum Universal has achieved a higher turnover and profits in the 12 months ended March 31, 2000. Net sales were slightly higher at Rs. 257.96 crores against Rs. 251.02 crores. Other income was higher at Rs. 17.10 crores (Rs. 10.66 crores). The gross profit, before depreciation and interest charges, has risen to Rs. 63.24 crores from Rs. 55.64 crores. In line with the group policy of progressively reducing investments in other Murugappa group companies, certain investments were sold yielding a profit of Rs. 7.17 crores. Last year, a profit of Rs. 1.96 crores was realised on this account.

Interest charges were lower at Rs. 16.18 crores (Rs. 18 crores). The amount set aside for depreciation is Rs. 12.21 crores (Rs. 11.75 crores) and taxation Rs. 8.90 crores (Rs. 6.20 crores). The profit after tax is higher at Rs. 25.95 crores against Rs. 19.69 crores. The company has announced a final dividend of 10 per cent, making with the interim a total of 60 per cent. The payment in 1998-99 was 50 per cent. Earnings per share have gone up to Rs. 21.44 from Rs. 16.27.

Parrys Confectionery

Parrys Confectionery, also of the Murugappa group, has reported a smaller turnover of Rs. 93.99 crores in the 12 months ended March 31, 2000 against Rs. 139.10 crores in 1998-99. Several failures in product launches, inability to quickly respond to changing customer preference and competition and poor working capital control led to the reduced turnover, according to a company release. The company suffered a loss before depreciation and interest charges of Rs. 5.80 crores against a profit of Rs. 13.96 crores.

Interest charges claimed Rs. 4.21 crores (Rs. 4.45 crores). The provision for depreciation is Rs. 7.29 crores (Rs. 6.78 crores). Extraordinary items accounted for Rs. 72 lakhs (Rs. 98 lakhs). No provision has been made in respect of taxation. The allocation under this head on the former occasion was Rs. 35 lakhs. The net loss was thus Rs. 16.58 crores against a profit of Rs. 3.36 crores.

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Section  : Business
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