The company's net profit for the quarter marginally improved by 4.92 per cent to Rs 13.01 crore in the third quarter of fiscal 1999-2000 from Rs 12.40 crore in the corresponding period of the previous year.

Sales turnover has excluded its explosives business which was transferred to a subsidiary-Indian Explosives-on September 29 last year. According to the results, the company's operating profit dropped by 49.01 per cent to Rs 15.23 crore during the third quarter to December 31, 1999, from Rs 29.87 crore in the same period of fiscal 1998-99.

During the first nine months of the current fiscal, income from operations increased by nine per cent to Rs 702 crore over Rs 643.89 crore in the same period of the previous fiscal. Net profit has also increased to Rs 51 crorein the first nine months to December 31, 1999, from Rs 47 crore in the same period of 1998-99. The rise in net profit during the third quarter to December 31, 1999, is due to two main factors - non-provisioning of taxes and an exceptional income component of Rs 6.50 crore which includes profits booked on sale of residential property in Calcutta.

According to notes accompanying the results, exceptional items which include profit on sale of Calcutta property has been "partially offset by VRS [voluntary retirement scheme] payments and restructuring charges".

ICI had made a tax provision of Rs 3.50 crore in the third quarter of 1998-99 but skipped this time. During the third quarter to December 31, 1999, its net profit of Rs 13.01 crore has been boosted by Rs 6.50 crore on account of exceptional items from a profit before tax position of Rs 6.51 crore.