MUMBAI: Mangalore Refinery and Petrochemicals Ltd (MRPL) has recorded a drastic 50.46 per cent fall in its net profit to Rs 14.06 crore in fiscal 1998-99 compared to Rs 28.38 crore in the previous fiscal. The total turnover of the company went up by 78.6 pr cent to Rs 2,418.77 crore in 1998-99 from Rs 1,354.34 crore in the previous year.

The company's profitability was eroded by the introduction of the market determined pricing mechanism (MDPM) under which MRPL's returns are linked to the differentials between international crude prices and product prices, which have been low, a company statement said here today.

Further, the low import duty differentials between crude and finished products as well as large outstandings from the oil pool account (OPA) have adversely affected MRPL's Profitability, the statement added.

Novartis recommends 85 pc dividend

MUMBAI: The board of directors of Novartis India Ltd has recommended a dividend of Rs 8.50 per share for 1998-99up from Rs 4.00 per share in the previous year. The company recorded a 95 per cent increase in net profit at Rs 74.7 crore for the year ended March 31, 1999 as compared with Rs 38.3 crore in the previous fiscal.

The higher net profit has been partly due to the company showing the merger/demerger charges of Rs 12.4 crore and the wealth tax provision of Rs 4.5 crore in the previous year, said a company release. Sales were up by 13 per cent to Rs 747 crore against Rs 663 crore last year. Profit before tax grew by 70 per cent to Rs 111.6 crore against Rs 65.7 crore last year. Depreciation fell to Rs 14.2 crore from Rs 14.5 crore. Novartis' major businesses like crop protection and pharmaceuticals have recorded strong performance over the last year. Interest costs were low due to lower debt levels, said the release.