Rhone-Poulenc Net Profit Rises 47 Per Cent To Rs 20 Crore

Rhone-Poulenc (India) Ltd has changed depreciation rates which has consequently led to an increased net profit by Rs 2.15 crore.

In its 1996-97 results announced on Tuesday, the company said it was lowering depreciation rates on assets revalued earlier from 1989-90 to 1995-96. The excess depreciation has been added back leading to a higher net profit. Without the change, the net profit would have been Rs 18 crore and not Rs 20 .23 crore.

Although the company continues to follow the written down value method, the rates of depreciation have been brought down for the previous years. Hence, depreciation charges of Rs 2.15 crore have been added back to the profit. The 40 per cent French subsidiary posted a seven per cent increase in sales and a 47 per cent rise in net profit. The EPS rose from Rs 30.42 to Rs 44.96.

Total income at Rs 156.42 crore stood higher than Rs 144.06 crore posted in 1995-96 on account of a 26 per cent rise in other income.

The other income went up from Rs 8.38 crore in 1995-96 to Rs 10.58 crore this year.

The total expenditure increased by around seven per cent to touch Rs 121 crore as compared to nearly Rs 114 crore last year.While the reserves were recorded at Rs 26 crore last year, the reserves for 1996-97 have not been mentioned in the results this year. There has been a 77 per cent cut in interest outgo, which dipped from Rs 95 lakh to Rs 22 lakh. Rhone-Poulenc officials said the company hardly utilised overdraft facilities and working capital requirements were met by internal generation.