Operating profit was Rs 31.94 crore (Rs 106.71 crore for FY 1997-98). Interest and financial charges came to Rs 17.08 crore (Rs 67.60 crore for 1997-98).

According to TNPL officials, the profit was possible on account of a higher sales of 5000 tonnes compared to the corresponding period last year and also due to tighter cost controls. Production in the next quarter is expected to be higher with tight cost controls and the company is expected to reap in more benefits in due course. The company is also providing technical support to set up a 1.2 million tonne per annum bagasse-based paper project in Egypt. An MoU was signed this week by TNPL and Quena Newsprint and Paper Company of Egypt. The new project costs$350 million. QNPC will also market TNPL paper in African and Arabian countries.