Mumbai, June 2: Hind Lever Chem’s decision to discontinue fertiliser sales in Bihar has cast a shadow on the company’s turnover as fourth quarter sales plunged to Rs 147.84 crore from Rs 232.87 crore in the previous corresponding period.
The company’s net profit was lower at Rs 2.88 crore in the reporting quarter compared with Rs 11.29 crore posted during the same period a year ago.
For the year ended March 31, 2003, Hind Lever Chem has reported a 36.56 per cent decline in net profit at Rs 30.03 crore compared with Rs 47.35 crore posted in the previous fiscal.
The company’s total income dipped to Rs 986.65 crore during the year under review, compared with Rs 1,065.4 crore posted in 2001-02.
However, the company cheered shareholders by announcing a bumper dividend of 137.5 per cent, perhaps for the last time as the company is slated to merge with Tata Chemicals.
HLCL said the sales volume of its fertiliser business during the quarter was lower mainly due to the discontinuation of sales in Bihar from October 2002. The company’s move followed the government’s decision to withdraw ‘on account' payment of price concession for sales made in Bihar.
Another reason for the lower profits was the lower than estimated price concessions announced by the government. “It adversely affected profits for the quarter as well as for the full year,” the company said.