Battling competitive pressures and a recession in its customer base, BOC said turnover for the year to September 30, 1998, had shown a marginal growth to Rs 236.50 crore from Rs 232.90 crore the previous year. Profit before interest, depreciation, tax and extraordinary items was Rs 20.70 crore, against Rs 31.90 crore in the previous year.

The company's board, which met in Calcutta on Thursday to finalise the results, has not recommended any dividend for the year.

BOC said the low growth in sales reflected the recession that has hit the iron and steel, automobile, fabrication, ship-breaking and scrap cutting sectors, which form the major chunk of the company's customer base.

However, it said, therecent steps taken by the government to boost the steel industry is likely to have a positive impact on the company's performance in the future.

BOC is also expanding its medical-gases business by installing pipeline supplies to leading hospitals and nursing homes. The company said it expects a rapid expansion and privatisation of the health-care segment after the government's decision to allow 40 per cent foreign investment in health insurance.

To tackle the competition in its own business, BOC India is doing a comprehensive review of its processes and control systems, and re-engineering the organisation into a `leaner, fitter' business with a lower cost base. The company is also improving its information technology systems for faster response and enhanced customer service.

Internationally, BOC Gases is downsizing and restructuring its businesses to refocus the organisation. This is also being done in India.

During the year, BOC India commissioned a Rs 200-crore air separation unit at Jamshedpur inBihar. The 1,290 tonnes per day unit was capitalised and began commercial production on September 1, 1998.

The company said the payback period for the unit will be long, and results in the short term will be impacted by the depreciation and interest burden. It said overall interest charges were brought down during 1997-98, but did not give the figures.

The sale of the Ohmeda health-care products division was completed with effect from the close of business hours on September 30, 1998. The division was sold as a going concern to the Indian associate of Finnish health-care major Instrumentarium Corp, at a `slump sale' price of Rs 30.67 crore.

BOC India made a profit of Rs 8.81 crore from the deal, and is deploying the bulk of the funds in restructuring its industrial and medical gases business.