The company's other income was lower last year at Rs 79.49 crore compared to the previous year's Rs 112 crore.

The total expenditure also went up significantly by 13 per cent to Rs 2629.17 crore from the last year's Rs 2325.60 crore, a company statement said here today. The company has attributed the dismal results to the steep drop in the prices of petrochemicals in the international market which impacted sales value and margins.

In spite of the depressed profits, the company has declared a dividend of 10 per cent on an equity base of Rs 249 crore higher interest outgo (Rs 261.87 crore), higher depreciation (Rs 270.38 crore) all contributed to reduced profits for IPCL.

It produced 10.71 lakhmetric tonnes of petrochemical products from its three complexes at Vadodara, Nagothane and Dahej compared to 9.65 lakh metric tonnes produced in the previous year. IPCL managed capacity utilisation level at 91 per cent inspite of the plant at Nagothane being shut down for 45 days due to expansion of its cracker and swing polyethylene unit.

During the year, IPCL commissioned a new high density polyethylene plant at Dahej to emerge as the largest manufacturer of polyethylene in the country with a combined capacity of 5.4 lakh tonnes per annum. The company sold 11.6 lakh tonnes of merchant products during the year, up by 16 per cent from the previous year.

In 1998-99, IPCL privately placed debentures and bonds to the tune of Rs 195 crore and issued commercial papers worth Rs 1275 crore on replenishment basis as an alternative source of working capital.

According to the company it was able to mitigate the adverse impact of depressed prices by driving its volumes up, stressing on supply chain and efficientutilisation of its marketing network.