The slide in the net profit, the company said in a statement, was due to the accelerated depreciation policy adopted by the firm. Depreciation charges have seen a 160 per cent hike and have been provided at Rs 14.95 crore (Rs 5.73 crore).

Net sales of the company has registered only a marginal 5.5 per cent increase at Rs 100.25 crore (Rs 94.96 crore). Total expenditure has gone up to Rs 65.22 crore (Rs 63.48 crore). Interest charges were higher at Rs 8.02 crore (Rs 5.41 crore) during the first half of the current fiscal. Gross profit after interest but before depreciation and taxation was Rs 27.31 crore (Rs 26.25 crore). The paid-up equityshare capital of the company stood at Rs 20.25 crore.

Since the systems, procedures and operations of the company are Y2K compliant, there will not be any adverse impact on account of millennium issue, the company release said.