Though operating profit at Rs 101.12 crore was lower during the year against Rs 108.35 crore in 1997-98, the company's bottomline got a boost due to sale of shareholdings in Nalco, ZIAL and Animal Health brands during the year. Exceptional income earned by the company was Rs 26.48 crore during the year.

The board of directors, which met on Wednesday, has recommended a dividend of Rs 5.50 per share against Rs 5 per share in 1997-98, according to a company statement issued here on Wednesday.

Other income during 1998-99 was marginally lower at Rs 39.31 crore, taking the total turnover to Rs 872.64 crore for the year against Rs 753.35 crore in the previous year.

Gross profit after interest but before depreciation and taxes was Rs 73.56 crore as against Rs 88.23 crore in 1997-98. Depreciation was higher at Rs 24.16 crore in1998-99 compared to Rs 18.29 crore in the previous year. Interest expenditure during the year rose to Rs 27.56 crore from Rs 20.12 crore.

Equity capital has remained unchanged at Rs 40.87 crore while reserves (excluding revaluation reserves) have rise to Rs 244.05 crore from Rs 207.62 in 1997-98.

According to a company statement, paints, explosives, polyurethanes and acrylics improved their market positions. Explosives business volume grew 15 per cent. The polyurethanes business doubles sales over 1997-98 through increased market share gained by improved customer service and improvement in logictics through local warehousing and sale, according to the press release.

The rubber chemicals business grew 15 per cent in sales value through an improved product mix over the previous year. Global prices dropped during the year putting pressure on gross margins.

The company divested animal health brands to help focus pharmaceuticals more strongly on its core areas, the press release stated.