The gross profit was at Rs 24.43 crore (Rs 14.89 crore). While total expenditure was higher at Rs 93.17 crore against Rs 57.73 crore, depreciation stood at Rs 1.76 crore as compared with Rs 1.67 crore.

Operating profit margins came down to 20.82 per cent during the quarter from 21.55 per cent in the same period last year.

The company with a huge thurst on exports with competitive advantages of a wide service network, large installed base, brand equity, parent company's support is well-placed in the industry. Although demand in the industry has a cyclical pattern, major players like Ingersoll Rand are better protected from cycles as they derive significant revenue from spares, after sales service and exports, industrysources said.

INSIGHT
Growth to remain buoyant

In the previous financial year, there were no despatches on account of the large three-year ONGC contract that commenced in 1997. In fact, for the first nine months of 1998-99, there were no despatches with only the last quarter seeing a Rs 23 crore booking and the first quarter of 1999-2000 seeing revenues worth another Rs 21 crore being booked. Minus these revenues the top line growth narrows to 30 per cent, while if the ONGC revenues are included, the growth is 60 per cent.

But even after the completion of the ONGC order, growth rates are expected to remain buoyant. The construction and mining equipment division which supplies products such as drills, soil compactors, etc, has been doing very well and other divisions are expected to improve in the current year. In addition to its markets in southeast Asia, Ingersoll Rand has sucessfully developed new markets in South Africa and Israel. Another noteworthy feature is that Ingersoll Randhas become completely debt free and interest costs are practically nil.

--Aaron Chaze