Kanoria Board Recommends 35% Payout

The board of directors of Kanoria Chemicals and Industries Ltd has recommended a higher dividend of 35 per cent as against 25 per cent last year. Chairman SS Kanoria said the company witnessed improved margins and the gross profit before interest and depreciation for the year ended March 31, 1997 was Rs 44.89 crore as against Rs 41.34 crore earlier.

The profit before taxation declined marginally to Rs 21.43 crore this year (Rs 22.03 crore), while net profit of the company stood at Rs 19.13 crore after providing for tax of Rs 2.30 crore. The dividend received by shareholders would be tax-free, Kanoria said. The decline in net profit was attributed to higher depreciationprovisions and introduction of new taxes including minimum alternate tax.

 

The company has also commissioned a 25 mw coal-based thermal power plant at Renukoot in April this year which has attained 85 per cent of desired capacity, said RV Kanoria, vice-president of the company.

At present, the company spends 34 per cent of its total input cost on energy.

which is expected to come down to 18 per cent following the commissioning of the Rs 110-crore power plant. Kanoria said in order to concentrate in core competence areas, the textile division of the company was being transferred to a separate company with effect from April 1, 1997. The scheme of arrangement, which has already been approved by the shareholders, is now awaiting sanction of the Calcutta high court.

The shareholders of Kanoria would be issued shares in the new company and it will not be a fully owned subsidiary of the

Kanoria Chemicals and Industries. Exports from the Ankleshwar chemical division of Kanoria have risen to Rs 11.55 crore this year as against Rs 2.33 crore last year.