SRF registered a net profit of Rs 2.7 crore (-0.3 crore) on an increased turnover of Rs 175 crore (Rs 142 crore) for the fourth quarter ended March 31, 2000. Explaining the reasons for the increase in profits, SRF managing director Ravi K Sinha said here on Wednesday: "Cost reduction, lowering of the interest burden and profit improvement initiatives taken by the company have resulted in substantial benefits". The company's profit before interest, depreciation and tax for the year increased to Rs 205 crore from Rs 161 crore in the previous year. The company had earlier declared an interim dividend at Rs 1.5 per equity share, which will be paid on May 30, 2000. This is the final dividend for the year 1999-2000.

SRF plans to explore new business opportunities through acquisitions and alliances in both industrial yarn/fabric and flurochemicals. The company is looking at some acquisitions in Thailand, Europe and Singapore, a company official disclosed. It hopes to expand its capacity to 50,000 TPA of tyre cord fabric by 2001. At present, it has a total capacity of 42,000 TPA, which includes that of the Dubai subsidiary.

With the recent acquisition of DuPont Fibers Ltd, the company has become the seventh largest tyre cord manufacturer in the world. The company plans to become the world's third largest in the next three to four years. SRF plans to merge Tyre Cord Fabric Ltd - earlier known as DuPont Fibers Ltd - in the company.

The company will spend a total of Rs 30 crore for a capacity of 13,000 TPA of DuPont's nylon cord fibre, which includes Rs 21 crore as the acquisition cost. Once with a highly diversified portfolio, the company has in the last few years divested its non-core businesses including SRF Nippondenso, SRF Finance, vision care division, SRF International, Shriram Bearings and Shriram Needle Bearings Ltd. The company has completely delinked from DCM Ltd, the vice-chairman Arun Bharat Ram said, adding "my brothers and I have decided that we would have no financial interests in each others' companies".

As part of the continued thrust on professionalising the company, he added "my sons will not be involved in SRF's management". SRF has written off Rs 32 crore as NPAs for the year ended March 2000, which comprise of overdue receivables, disputed excise liabilities and loss on sale of investments.

The company reduced its debt from Rs 608 crore in 1998-'99 to Rs 429 crore in 1999-2000 and has cut down its Rs 89 crore ICDs to nil this year.