The unaudited results were taken on record by the board of directors of the corporation in its meeting held in Mumbai on April 28.

According to a company release, STCI's total income has registered a rise of 18 per cent to Rs 264.74 crore from Rs 224.38 crore last year. "The fall in the company's net profit despite an increase in the total income was due to relatively higher funding costs resulting from higher call money rates in 1998-99 as compared to rates prevailing in 1997-98," said the release issued on Thursday.

Due to high interest rates, the company's pre-tax profits fell by 16 per cent to Rs 127.62 crore from Rs 151.65 in the previous year.

STCI has stated that it has managed to contain the decline in profits due to risk management strategies adopted by thefirm.

The company release said that the average yield on Government securities remained stagnant throughout the year due to abundant supply of government papers through primary issuances and the Rerserve Bank of India's open market operations (OMO) which resulted in limited trading opportunities during the year. "Consequently there was a decline in trading profits in respect of government securities," it said.

The net worth of the primary dealership outfit is expected to cross Rs 600 crore from the previous year's Rs 578.28 crore.

During 1998-99, STCI surpassed the annual bidding commitments made to the RBI--both in terms of Government securities and treasury bills. During this period, it also achieved the required success ratios at the primary auctions and turnover ratio.