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SRF net at Rs 6.70 cr in Q3

Our Bureau

NEW DELHI, Jan. 18

INDUSTRIAL yarn and fabric manufacturer, SRF Ltd has reported a 5.51 per cent increase in net profit for the third quarter ended December 31, 1999 at Rs. 6.70 crores as compared to Rs. 6.35 crores in the corresponding period of the previous year.

The net profit recorded during the third quarter is after taking a charge of Rs. 9.18 crores towards the employee stock purchase scheme (ESPS).

During the third quarter, the company issued 28,43,600 equity shares to the employees under the ESPS at an issue price of Rs. 15 per share.

While Rs. 9.18 crores have been charged to the profit and loss account, a corresponding credit has been made to the share premium account in accordance with the SEBI guidelines. This amount represents the difference between the market price on the date o f allotment (Rs. 47.30 per share) and the issue price (Rs. 15 per share).

Net sales of the company for the third quarter increased to Rs. 176.63 crores from Rs. 152.91 crores. Other income for the period under review stood at Rs. 0.99 crore (Rs. 1.66 crores). Gross profit (before interest, depreciation and taxation) increased to Rs. 49.89 crores from Rs. 40.58 crores during the corresponding period of the previous year.

Interest and finance charges for the period under review declined to Rs. 22.99 crores from Rs. 26.30 crores. The company has provided Rs. 1.66 crores during the third quarter towards non-performing assets (NPA).

Further, no provision has been considered for the foreign currency fluctuation on the foreign currency loans outstanding as on December 31, 1999. The impact of the same for the year works out to Rs. 0.30 crore as on December 31, 1999. A company statement said that the provision will be made at the end of the financial year based on the exchange rate prevailing at that time.

For the nine months period ended December 31, 1999, the company has reported a net profit of Rs. 24.13 crores (Rs. 13.85 crores) on a net sales of Rs. 489.78 crores (Rs. 428.63 crores). The company has also provided Rs. 20.47 crores as NPA provision for this period.