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HL Chem's net up 71 pc to Rs 424 million in '98, to offer Rs 13.50 as dividend

The board of Hindustan Lever Chemicals Limited, which met in Bombay today, has recommended a dividend of Rs 13.50 for the year ending December 31, 1998.

HLCL has posted a gross turnover of Rs 9.23 billion in 1998, a growth of 63 per cent over Rs 5.66 billion in 1997. Profit before tax at Rs 622 million (1997: Rs 415 million) has increased by 50 per cent while profit after tax at Rs 424 million (1997: Rs 247 million) has jumped by 71 per cent.

In view of the improved performance, HLCL has proposed a dividend of Rs 13.50 for 1998, (on expanded equity capital after the issue and allotment of bonus shares in the ratio of 1:1 during 1998) compared to Rs 18 in 1997.

The government of India has not announced the revised price concessions applicable on the sale of phosphatic fertilisers at the time of publication of the September quarter results. On December 28, 1998, subsidies were announced for kharif 1998 and provisional subsidies for rabi 1998-99. The results are based on management estimates of realisation of these provisional subsidies for rabi 1998-99.

Earlier, at its meeting held on January 4, 1999, HLCL board recommended preferential issue of a maximum of 2.25 million equity shares by private placement at a minimum price of Rs 375 per share (including a minimum premium of Rs 365 per share) to raise about Rs 844 million. This will go towards part-financing of two new fertiliser plants and a new sulphuric acid plant which are being set up at a cost of Rs 1.20 billion and are expected to start commercial production by the first half of 1999.

HLCL has convened an extraordinary general meeting of its shareholders on February 1, 1999, at Rajpura, Punjab, where its registered office is located, to seek their approval for the proposal.

During the year, HLCL's Paras brand of phosphatic fertilisers maintained its leadership in the existing markets and entered new markets. HLCL also maintained its position as the largest supplier of sodium tri polyphosphate in India.

HLCL's Haldia fertiliser plant received the prestigious environment protection award of the Fertiliser Association of India. This is the sixth time the factory has been so commended.

With an investment of about Rs 200 million in environment protection alone, the plant does not generate any liquid effluent, converts solid waste into value-added products and ensures that gaseous emission is well below the standards set by the pollution control board.

UNI

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