ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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MODI RUBBER-To Roads Overseas

IEL Poor Offtake IEL has suffered a setback in its working during 1986-87 with lower income and profits, primarily due to adverse conditions prevailing in fertilisers, fibres and -cypermethrin business areas. While total income amounted to Rs 344.81 crore against Rs 384,44 crore in the previous year, gross profit dropped from Rs 37.61 crore to Rs 28.54 crore, reflecting diminution of profit margins. With depreciation claiming much more, profit dwindled to Rs 5.05 crore from Rs 19.41 crore. Dividend has been slashed from 22.5 per cent to 12.5 per cent which too is not fully covered by earnings whereas last year's payment was covered more than twice. It may be, however, maintained that last year's profit figure included a write-back of depreciation of Rs 6.01 crore. Moreover, interest on borrowings has claimed more this year at Rs 20,36 crore against Rs 15.68 crore. While capacity utilisation of the fertiliser plant increas ed from 85 per cent to 92 per cent, the market remained heavily over-supplied with a severe drought in the company's area depressing the demand for nitrogen. Large competitive discounts were offered by fertiliser manufacturers to move stocks and it was not until about mid-June that standard levels of discounts were restored following firm directives given by government. Although market discipline has been maintained since that time, fertiliser availabilities continue to far exceed demand, leaving industry with stocks at a very high level. During the year the government announced an increase in the price applicable to the company's output with effect from April 1, 1985..

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