Tyre and industrial products manufacturer Dunlop India Ltd has reported an estimated 83.52 per cent slump in net profits at Rs 5.14 crore for 1996-97 as compared with Rs 31.2 crore clocked in the previous fiscal. The board of directors recommended a 10 per cent dividend on which a sum of Rs 0.19 crore would be payable as corporate tax on dividend.
In absolute terms, the net profit dropped 86.82 per cent against Rs 39 crore registered last year which was a 15-month period accounting year and ended on March 31, 1996.
The Rs 562.99 crore company had a stagnant working capital of Rs 40 crore during the last six years and needs a fresh infusion of at least Rs 100 crore as additional working capital to sustain its operations, say sources.
Net sales and other income fell by Rs 14.5 per cent at Rs 562.99 crore against an annualised figure of Rs 659.22 crore for the previous year.
Gross profit slumped by 69.17 per cent at Rs 11.52 crore against an annualised figure of Rs 37.37 crore. Dunlop had clocked a Rs 39 crore gross profit for the 15 months ended March 1996.
The total expenditure of the company was reduced by 12.2 per cent at Rs 529.80 crore against an estimated annualised figure of Rs 604 crore.
In absolute terms, the expenditure for 15 months ending March 1996 was Rs 755.24 crore.
Interest payment increased marginally to Rs 21.67 crore against an estimated annualised interest of Rs 17.65 crore.
Dunlop, however, recorded a higher turnover from operations which at Rs 559 crore is 8 per cent more than previous year's figure of Rs 517 crore (annualised).
