For the nine-month period ended December 31, 1999, however, the company has recorded a 18.50 per cent drop in net profit to Rs 13.43 crore, against Rs 16.48 crore recorded in the corresponding period last year.

During September-December, the company's other income registered a sharp rise to Rs 28.24 crore from Rs 8.23 crore last year. Other income during the nine month period also rose sharply to Rs 44.28 crore against Rs 18.66 crore during the same period last year.

Sales (excluding excise duty) during the third quarter slipped by eight per cent to Rs 82.56 crore during the quarter, from Rs 90.01 crore in the corresponding period last year. Sales for the nine month period also slipped by 13.48 per cent to Rs 254.38 crore as against sales of Rs 294.03 crore reported in the corresponding period last year.Total expenditure during the quarter was, however, kept under check at Rs 90.44 crore from Rs 92.55 crore reported the same time last year. For the nine month period, the total expenditure of the company dipped to Rs 274.74 crore from Rs 285.21 crore during the corresponding period last year.

Insight
in line with industry trend

The performance of L&T's ECC division was the clear indicator of the state of affairs in the industry and the Thermax results are in the same mould.The operating loss in the third quarter at Rs 7.88 crore is three times higher than Q3 1998-99 loss of Rs 2.54 crore. It is not possible to estimate the exact operating loss as excise is included in the topline instead of in total expenditure. It may be noted that for the nine month period other income ended December 1999 at Rs 44.28 crore is higher than in 1998-99 but PBT is just 35 percent. Though fourth quarter is always the best quarter and this year will be no different but it will be nowhere near Q41998-99.

Urmik Chhaya