The cumulative net profit for the second and third quarters has wiped off the huge losses suffered during the first quarter, said an IPCL release.

Net sales have also increased sharply to Rs 734.66 crore during the quarter ended December 31, 1998, from Rs 218.22 crore. While the gross profit is Rs 105.35 crore, deprecaiation is Rs 68.41 crore. Interest for the period is Rs 78.55 crore.

"Though prices of major polymers and fibre intermediates have shown slight improvement from their historic lows, downturn in the global petrochemical business has affected the business in the third quarter," said the release.

Effective supply-chain managemnt andcost-control measures have helped the company mitigate the impact of the downturn, the relase added.

The combined production of all the three complexes at Vadodara, Nagothane and Dahej stood at 7,66,000 metric tonnes for the first nine months, compared with 6,76,000 metric tonnes recorded for the corresponding nine months last year.

During the first nine months, the company's sales went up to 7,90,000 metric tonnes, compared with 6,77,000 metric tonnes recorded in the same period the previous year.

The company's strategic investments in the jetty at Dahej and networking of Vadodra and Gandhar complexes with pipelines helped contain the feedstock cost.

The expanded cracker at Nagothane is being fully utlised owing to the Oil & Natural Gas Corporation's commitment to supply 570,000 mta of feedstock and creation of storage terminal at Pirpav, through which 90,000 mta can be imported, said the release.