Though cement sales improved by 5 per cent to 58.82 lakh tonnes from 55.15 lakh tonnes, a 2 per cent fall in realisation per tonne (from Rs 2,407.47 per tonne to Rs 2,378.60) neutralised the impact of the increased quantum of sale.

Moreover, in the previous fiscal, ICL had benefited significantly from a high other income arising out of profit on sale of investments to the tune of Rs 33 crore during the merger of Raasi Cements with itself and disposal of some properties which generated a surplus of Rs 14 crore.

The operating profit for 1999-2000 was lower at Rs 291.51 crore (Rs 308.50 crore) on account of higher input costs but despite increased capacity utilisation and lower power consumption. ICL has managed a marginal increase in income from cement operations if other income is not factored into previous year's operating profit calculation. Interest and finance charges increased by 12 per cent to Rs 170.41 crore (Rs 151.84 crore) as the company is yet to fully benefit from various measures initiated by it to cut borrowing cost. Gross profit for the year was Rs 121.10 crore (Rs 156.66 crore).

Valuation of inventory in line with the revised accounting standard AS-2 has resulted in the stock valuations declining by Rs 25.13 crore. Had this been taken into the profit and loss account the bottomline would have been still lower by that figure. But ICL has considered this as an extra-ordinary item `as it cannot be attributed to the operation of the year under review'.