Higher Sales, Uncovered Dividend

Higher Sales, Uncovered Dividend Hansavivek NATIONAL ORGANIC CHEMICAL INDUSTRIES LTD (NOCIL) experienced contraction of margins despite higher sales. This is attributed to a reduction in the plant operating days following a series of equipment failures and rise in costs of raw materials, fuel, and other supplies without the company being able to proportionately increase selling prices. Lower profit notwithstanding, the provision for income- tax has had to be higher since the permitted tax benefits of previous years have been fully availed of. Dividend, maintained at 12 per cent on the capital enhanced by a one-for-two bonus issue, is consequently not fully covered by the earnings. There was a distinct improvement in the demand for most chemicals. PVC sales looked up too, following a reduction in the exise duty on PVC resin in March 1976. Sales of distributorship chemicals