ATUL-Margins under Pressure

EPW Research Foundation ATUL Margins under Pressure ATUL, the Gujarat-based dyestuff major, seems to have notched up an encouraging performance in 1996-97. While the company's net sales and value of production improved by 173 per cent and 10.7 percent, respectively, its operating profit surged by 37 per cent over the previous year. The sharp rise in operating profit, however, was somewhat arrested by the steep increase in interest charges which rose by 61.4 per cent during the same period. After depreciation charges (up 3.6 per cent) and a tax provision of Rs 2.02 crore (1995-96; nil), the company's net profit increased by 13.1 percent.