ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Sound Base for Major Expansion

Sound Base for Major Expansion Hansavivek TATA CHEMICALS' application for setting up gas-based nitrogenous fertiliser complex at Babrala, in UP, has been cleared at all levels and is awaiting formal approval of Cabinet Committee of Economic Affairs, D S Seth, Chairman, expects that a letter of intent will be received soon. This project is to be implemented by a new company 'Tata Fertilisers', which is a wholly-owned subsidiary. Government has, for time being, deferred decision on company's application for a phosphatic fertiliser complex in Okhamandat for production and supply of balanced plant nutrients as a part of a strongly farmer-oriented package of inputs and services. Management is anguine that, at an appropriate time, government will accord approval to this proposal too. Meanwhile, the company has produced good results in year ended March 1984 with record production, sales and profits. Shareholders have also been rewarded with a record dividend of 25 per cent, besides a two-for-five bonus issue of equity shares. Also, employees' earnings increased by about 10 per cent. Gross profit more than doubled from previous 9-month figure of Rs 15.51 crore to Rs 31.97 crore following increase in sales from Rs 65.91 crore to Rs 106.25 crore, reflecting a notable widening of profit margins. With both depreciation and taxation claiming much more, gap narrowed and net profit came to Rs 9.21 crore (Rs 8.23). Dividend stepped up from 19 per cent to 25 per cent on enlarged capital was covered 3.14 times as against 4.16 times previously.

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