Sales suffered a 7.5 per cent drop to Rs 747.01 crore during the period compared to Rs 808.23 crore last year. The company said that sales and profits were depressed mainly because soda ash demand and margins were under pressure on account of general economic slowdown coupled with imports of cheap soda ash and because of restricted allocations under the Essential Commodities Act for sale of urea on account of unseasonal rains.

The company said that results of the fertiliser division continued to be predicated on the basis of the provisional price pending the government's decision on the retention price of urea.

Operating profit dropped 18.61 per cent to Rs 258.52 crore from Rs 317.67 crore in the same period last year. Operating profit margins dropped to 34.6 per cent from 39.3 per cent last year. Netprofit margins at 13.44 per cent came under pressure and dropped from 16.73 per cent last year.

The company reported a lower net profit and sales at Rs 68.20 crore and Rs 430.60 crore during the quarter period ended September 30, 1998, as against Rs 105.81 crore net profit and Rs 526.72 crore sales in the same period last year.