Meanwhile, the company has inducted its executive vice-president and chief operating officer RR Vederah into the board as a full-time independent director.

The company spokesman said that the issue of acquisition of 6 per cent stake by Mr Arun Bajoria was not taken up in the board meeting. The management is not concerned as the promotors' core holding in Ballapur is very comfortable, he said.

Rise in profit came on the back of an improved operating efficiency, rise in pulp and paper prices and a 27 per cent rise in turnover to Rs 377 crore.

Ballarpur has also rescheduled its borrowings from ICICI for reduction of interest rates by 2 per cent points, which is expected to bring down the interest cost. Total outstanding towards ICICI stands at Rs 300 crore and will result in an annual saving of close to Rs 6 crore.

During the quarter, Ballarpur reported a steep rise in operating profit margin (OPM) which improved from 14.71 per cent to 19.14 per cent. Operating profit during the quarter rose by 65.63 per cent to 72.08 crore, up from Rs 43.52 crore reported last year.

Figures for the current quarter relate to the restructured BILT and accordingly include the financial performance of pulp unit of APR and excluded those of unit Ashti vested in APR Packaging Limited, pursuant to the scheme of arrangement and reorganisation as approved by the Mumbai High Court. The figures for the corresponding quarter of last year are, therefore not comparable to the figures of the current quarter ended September 2000, says a company release.