With the demerger of the companys insulator business on August 1, 2002, figures for the quarter are not comparable with those of the previous year.
Net sales of the company (net of excise) was at Rs 371.10 crore, while interest and finance expenses were lower in the quarter, at Rs 10.55 crore than Rs 16.26 crore in the corresponding quarter last year. With interest income higher at Rs 9.53 crore than Rs 1.96 crore in the December quarter of 2001, the companys profit before depreciation, royalty and tax stood at Rs 61.07 crore.
With regard to the demerger of the insulator business, the company has stated that the resultant company is to allot shares and debentures to Indian Rayon, the aggregate of which is estimated to exceed the net book value of the insulator business by Rs 39.50 crore, which will be accounted for when the forgoing shares and debentures are actually allotted.
The company has also stated that it has entered into an share purchase agreement with Oil and Natural Gas Corporation Ltd for the sale of 41,012,461 equity shares of MRPL at Rs two per share.
The sale is to be completed after obtaining necessary permissions from concerned government bodies.