Temporary Setback

Temporary Setback Hansavivek TATA CHEMICALS suffered a sharp setback last year after showing record profits in each of the preceding 15 years. Gross profit declined, from Rs 9.85 crores to Rs 7.41 crores, despite higher sales of Rs 38.17 crores against the previous year's Rs 33.48 crores. Profit before tax came down from Rs 6.57 crores to Rs 4.07 crores even after taking into account a non-recurring profit of Rs 45 lakhs on sale of investments and reduction of Rs 57 lakhs in depreciation due to change in the method of its computation. Thus, without the benefit of these two factors, rating profit would have been actual- more than halved at Rs 3.05 crores (Rs 6.57 crores). The shipping division showed a cash loss of Rs 68 lakhs due to the continued recession in world shipping and the chemical division's profits were lower by Rs 2.84 crores: