Net profit in the corresponding quarter of the previous year was Rs 31.30 crore on net sales of Rs 428.60 crore.

The company has attributed a fall in sales due to depressed export performance. Domestic sales during the quarter under review was up by just 1.67 per cent to Rs 334.2 crore while exports plunged by 17.2 per cent to Rs 82.7 crore due to depressed market conditions in Russia.

Other income of the company was down to Rs 2.5 crore from Rs 3.4 crore. Interest cost, on the other hand, was nearly halved to Rs 6.2 crore from corresponding figure for 1998 was Rs 11.2 crore. Gross profit reported a small increase to Rs 64.1 crore from Rs 52.8 crore. Provision for taxation was stepped up to Rs 19.8 crore from Rs 12.6 crore during the quarter.

Consolidated results for the nine-month period ended September 1999 were more encouraging with domestic sales reporting 6.52 per cent growth to Rs 952.4 crore. Net profit during the nine-month period has risen 21 per cent.

Export sales, however, has dropped sharply by 48 per cent due to depressed market conditions in Russia and due to more competitive sourcing into that country, a company statement here said.

Nestle closed down one of its coffee manufacturing facilities due to sharp reduction in exports. The impairment of the facility cost the company Rs 4.6 crore during the quarter.