Ici Net Profit Up 8%, Income Down 6.7%

ICI India Ltd has posted an eight per cent increase in its net profit for the financial year ended March 31, 2001.

The company's total income, however, dropped by 6.7 per cent from Rs 902 crore for 1999-2000 to Rs 841 crore in 2000-01.

The operating profit of the ongoing businesses declined from Rs 86 crore to Rs 67 crore, a company statement said.

This happened "mainly on account of development and marketing initiatives in paints business and exclusion of explosives business profits in the year under review", it added.

The company's interest charges dropped from Rs 16.1 crore to Rs 3.5 crore. The board of ICI India has recommended a dividend at the rate of 55 per cent (Rs 5.50 per equity share) for the financial year ended March 31, 2001.

The motor and industrial pains business of the company has been transferred to Berger Auto and Industrial Coatings Ltd, a joint venture with Berger Paints Ltd, on May 1, 2001.

The explosives business of ICI India was transferred to Indian Explosives Ltd, a subsidiary of the company, on September 29, 1999.

"Hence the figures for this year are not comparable with that of the previous year," the statement said.

"ICI India has posted an exceptional income of Rs 46.4 crore, which consists mainly of profit of Rs 41.9 crore from divestment of polyurethane business and Rs 21.3 crore from disposal of surplus properties offset by provision for voluntary retirement payouts of Rs 8.4 crore and asset write-down and restructuring expenses for the Rubber Chemicals business at Rishra for Rs 7.3 crore," it added.