Sales for the second quarter ended September 30, 1998 rose by 13 per cent to Rs 805.38 crore against Rs 711.90 crore in the corresponding period of the previous year.

However, operating profit was down by 2 per cent at Rs 93.16 crore against Rs 95.49 crore. Interest burden was up by 9 per cent to Rs 46.41 crore from Rs 42.75 crore.

Gross profit/loss (after interest but before depreciation and taxes) was Rs 46.76 crore against Rs 52.74 crore, a fall of 11 per cent.

After providing for a depreciation of Rs 12.13 crore against Rs 13.86 crore and nil provision for taxation, net profit too declined by 11 per cent to Rs 34.63 crore from Rs 38.89 crore in the previous period.

According to the company, the production, sales and profits were affected asthe ammonia and urea plants at Tuticorin were shut down for routine turnaround maintenance and modernisation from May 20 to July 18 this year.

The union government is said to be actively considering the company's claims on account of escalation in certain input and other costs for the manufactured and imported fertilisers. Adjustments, if any, for claims accrued will be made in the accounts once the government makes a final settlement of these claims, it is said. The company will also consider provision for taxation at the year-end.