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IPCL crosses target, gives 40% dividend

The board of directors of the Indian Petrochemical Corporation Ltd met on Tuesday to adopt and pass the audited financial numbers for the year 1997-98 and recommended to maintain the dividend at 40 per cent to the shareholder.

IPCL achieved an all-time high production and crossed the targets set. The production volume almost touched the one million tonne (964,000 tonnes) which is 38 per cent more than previous years figures. Similarly, the company also sold over more than one million tonne of products (1.002 million tonnes), showing 23 per cent increase in volume sales over previous year. The board meeting was held at Baroda, Gujarat.

In terms of earnings, IPCL's net sales stood at Rs 29.83 billion and other income was of Rs 1.12 billion The increase in sales value is, however, around seven per cent over previous years figure. This growth is to be viewed in the light of over supply of polymers in Southeast Asia coupled with poor international prices due to trough in business cycle.

The steep devaluation of currency Southeast Asian region resulted in imports into India at very low prices further squeezing the margins for the company's products. As a result of all these factors, the gross profit for the year was Rs 5.1 billion (Rs 7.41 billion in 1996-97) and the net profit works out to Rs 2.13 billion as against Rs 5.1 billion in 1996-97.

Exports touched an all-time high of Rs 1.47 billion, a jump of nearly 59 per cent over that of last year.

The captive jetty at Dahoj and berth facilities at Pirpav as well as the cross-country hydrocarbon pipelines connecting Baroda and Dahej helped not only in importing a significant quantity of ethylene, propylene, naphtha, etc, but also augmented the levels and flexibility of operations. These facilities are expected to contribute substantially to the company's operations and profits in the coming year.

With the commissioning of the expanded cracker and polyethelene capacity at Nagothane and the expected start-up of the cracker and downstream facilities at Gandhar, 350,000 capacity additions will come into IPCL's fold during 1998-99.

During 1997-98, the company obtained the US patent and joined select league of a speciality catalyst for dehydrogenation of paraffins. The company is pursuing its research development and commercialisation efforts on sound footing in the specialised field of catalysts and also that of alpha olefins, carbon fibre, etc.

The board of directors also approved IPCL's long-term corporate plan: 'Global Strategy and Vision 2010'. The plan is a road map aiming at phenomenal grrowth of IPCL in terms of size, volumes, technological excellence and global presence.

UNI