Higher Profit through Cost Reduction

Higher Profit through Cost Reduction Kumaran Pola COASTAL PAPERS achieved a 55 per cent growth in net sales on annualised basis to Rs 16.41 crore during the year ended March 31, 1991. As shown by a lower expenses to sales ratio of 0.88:1 in 1989-90 compared to 0.94:1 in the preceding year, the company was able to achieve a drastic reduction in the cost of operations. Therefore, it could increase its operating profits by 144 per cent to Rs 2.39 crore and net profits by 321 per cent to Rs 1.60 crore. The company produced 15,059 tonnes of paper during the year as against 18,282 tonnes during the 18-month preceding period.