Operating profit in the first quarter of the current year improved to Rs 1.2 crore against Rs 0.5 crore in the corresponding period last year. A sharp rise in other income to Rs 1.9 crore against Rs 0.6 crore resulted in a near trebling of gross profit to Rs 3.1 crore from Rs 1.1 crore.

In June 1999, the company launched ACT II microwave popcorn, which is the largest selling brand of its kind in the world and is being imported from Golden Valley Microwave Foods of the USA, a division of Conagra. The company proposes to introduce the product to other major metros in course of the next few months.

`Sundrop' volumes grew by over 35 per cent in the first quarter of the current year compared to the corresponding period last year. The company has noted that "the unprecedented drop in international and domestic vegetable oil prices has continued".

As a result, domestic buyers of vegetable oils in forwards markets delaying/declining to lift material contracted for. Besides, the "sharp fall in RBD palmolein and soyabean oil prices have resulted in consumers of branded sunflower oil shifting to lower priced alternatives, putting considerable pressure on Sundrop volumes/margins."

The impact of lower vegetable oil prices on the company's results for the rest of the accounting year is expected to be significant, according to the company.