IPCL profits down 16%

MUMBAI, May 26: Indian Petrochemicals Corporation Ltd (IPCL) has posted a 16 per cent decline in net profit at Rs 510 crore for the year en...

MUMBAI, May 26: Indian Petrochemicals Corporation Ltd (IPCL) has posted a 16 per cent decline in net profit at Rs 510 crore for the year ended March 31, 1997, from last year’s level of Rs 604 crore. Net sales also nosedived at Rs 2,785 crore compared to the previous year’s figure of Rs 3,103 crore.

However, the dividend has been maintained at Rs 4 per share. The net profit margin dipped to 18.3 per cent from 19.50 per cent while the gross profit margin was down to 26.6 per cent from 35.19 per cent. Depreciation for 1996-97 was higher at Rs 148 crore, compared to Rs 122 crore in the previous year. Earnings per share was Rs 20.56, as against Rs 24.03 last year.

According to a company statement, lower import tariffs and depressed international prices for chemicals and petrochemicals affected overall sales realisation. The hike in fuel and raw material prices led to substantial increase in expenses.IPCL produced 7.05 lakh tonnes of petrochemicals during the year.

Story continues below this ad

The Vadodara and Nagothane complexes registered 87 per cent and 101 per cent capacity utilisation respectively for the major products. All the expansion projects at Vadodara were commissioned comprising the 75,000 tonne polypropylene plant, 15,000 tonne butadiene plant and 30,000 tonne polybutadiene plant.

The company also commissioned its captive jetty at Dahej, apart from the 1,50,000 tonne poly vinyl chloride (PVC) plant and the 1,30,000 tonne chlorine alkali plant. The first phase of IPCL’s third mega project at Gandhar petrochemical complex, thus, became operational during 1996-97.

The Gandhar and Vadodara complexes are now connected by three pipelines, one each for naphtha, ethylene and propylene.

The statement added that work on the second phase, inclusive of a gas cracker for 300,000 tonne of ethylene, 100,000 tonne EO/EG plant and 1,60,000 tonne HDPE plant is proceeding as per schedule.During the year, IPCL signed a technology agreement with BP Chemicals for putting up a 100,000 tonne acrylonitrile plant at Dahej.