Profit from operations after interest but before depreciation rose by 50 per cent to Rs 7.5 crores compared with Rs 5 crores in the previous years. The profit from operations were, however, inadequate to cover depreciation of Rs 31 crores.

During the year, the company sold off part of its investment in Swiss multinational Novartis India and fetched Rs 50 crores, a company press release said. Atul also received Rs 5 crores from Cyanamid Agro and Wyeth Lederle as the final payment for providing these companies infrastructure facilities at the Atul complex. These extra-ordinary incomes boosted the profit before depreciation, but after interest to Rs 62 crores and profit afterdepreciation, but before tax to Rs 31 crores. Tax claimed Rs 2 crores during the year.

Atul managing director Sunil S Lalbhai said that the year's results reflect the combined performance of Atul and Cibatul (which was merged with Atul effective April 1, 1998). However, Cibatul made a small net loss during the year and the real impact of the merger on the bottomline will be visible only in 1999-2000 and beyond, he added.

Meanwhile, another Lalbhai group firm, Amal Products Ltd has suffered a setback and incurred a loss for the financial year ended March 31, 1999, mainly on account of a drastic reduction in the selling price of its main product H-acid. The company made a cash loss of Rs 2.36 crores and a net loss of Rs 4.43 crores, though the management is confident of making profits during 1999-2000. The board has decided to skip dividend for the period.