In a press statement, the company has cited reduction in operational costs, better cement prices in eastern markets and low raw material prices for textile products for the rise in net profit. However, the total income rose only by 6.7 per cent to Rs 1,307.35 crore from Rs 1,225 crore in the fiscal 1998.

The company has declared a dividend of Rs 2 per share for the year ended March 1999 against Rs 1.5 per share last year after setting aside an amount of Rs 25.05 crore towards debenture redemption reserve and Rs 42 crore for the general reserve. The profit before tax rose to Rs 96.76 crore from Rs The steel division continued to fare badly due to adverse market conditions resulting in pressure on prices and margins.

Despite the general slowdown in the textile industry, the company has been able to maintaingood volumes. It has implemented the cost-cutting measures as recommended by Arthur Andersen. Raw material and overhead costs came down as a result of various measures.

But the real benefits of the cost-cutting measures, which began with the textile division but later extended to all others, will be known only over a period of time.

The company has convened the 74th annual general meeting of shareholders on July 2, 1999, at Zadagon in Ratnagiri district, Maharashtra.