ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
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Rescued by Decontrol

Rescued by Decontrol GOODYEAR INDIA, which paid a dividend of 20 per cent and also issued bonus shares on a one-for-one basis last year, is skipping dividend for 1973. The year's results have been extremely poor, with net profit plumetting from Rs 203 lakhs to a mere Rs 17 lakhs. This outcome occurred following only a 12 per cent shortfall in net sales. The profit erosion was mainly due to inflation which brought substantial increases in manufacturing costs with no corresponding increases in selling prices. Although the factory at Ballabgarh in Haryana operated under the constraints of power cuts, irregularities in supplies of coal, shortages of several raw materials and labour problems which entailed closure of the plant for a period in July 1973, production could be maintained at the 1972 levels. How ever, sales were lower because of the reduced availability of industrial rubber products and accessories from outside sources. The redeeming feature of the report is that the company achieved record production in last December and the output trend has continued to be encouraging since then. Profitability suffered in the first quarter of the current year owing to ''unprecedented" rise in the cost of raw materials, but the picture has vastly changed since the decontrol of prices of automotive tyres and tubes from April. The directors foresee improved prospects for the current year, if raw material and power supplies are not greatly restricted. The company's foreign exchange earnings amounted to only Rs 39 lakhs while the c i f value of imports of raw materials, compo nents and spare parts and capital goods and expenditure in foreign currency on account of technical fees, commission on exports and interest aggregated about Rs 95 lakhs. Besides, the amount remitted in foreign currency on account of dividends for 1971 and 1972 was Rs 45 lakhs. It may also be noted that the interest expenditure docs not include about Rs 24 lakhs paid in local currency on loans obtained in foreign currencies from ICICL HOECHST DYES AND CHEMICALS' production of polyvinyl acetate dispersions declined to 1,736 tons in 1973 from the previous year's level of 2,277 tons owing to non-availability of the principal raw material, vinyl acetate monomer. The price of this raw material also increased considerably as a result of the oil crisis and the company promptly jacked up selling prices. Sales of dyestuffs and textile auxiliaries, refrigerant gases and high density polyethylene were higher compared to

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