T N Petro Products found itself wallowing in the red in morning trades as the market soaked up news of a 74 per cent fall in the company's net profit.
The scrip of the maker of intermediates for detergents slumped 5.9 per cent to Rs 19.80 on BSE in morning trades. Around 73,900 T N Petroproducts shares changed hands in just one-and-a-half hours of trading.
TNPP posted a sharp 74 per cent fall in Q3 ended 31 December 2002 net profit to Rs 2.38 crore (Rs 23.8 million) compared to Rs 9.19 crore (Rs 91.9 million) in the quarter ended 31 December 2001.
Total income (net of excise) fell 17.98 per cent from Rs 204.63 crore (Rs 2.046 billion) in DQ 2001 to Rs 167.82 crore (Rs 1.678 billion) in the quarter ended 31 December 2002.
Profitability in the current year has been adversely affected by an increase in costs of raw material, power and fuel.
This was the second consecutive quarter when the company's performance has been affected by increasing costs of raw material, power and fuel.
TNPP's net profit fell 57.5 per cent in Q2 to Rs 4.38 crore (Rs 43.8 million) from Rs 10.31 crore (Rs 103.1 million) in Q2 ended 30 September 2001.
TNPP is a leading manufacturer of linear alkyl benzene used in the soap and detergents industry. It also makes ECH, used to manufacture epoxy resins and plant pesticides. In FY 2001-02, TNPP acquired the heavy chemicals division of Spic.
TNPP was the first company in the world to introduce an advanced process control system at its linear alkyl benzene plant. It was also the first company to export LAB from India.
TNPP was originally promoted by the Tamil Nadu Industrial Development Corporation but was later converted into a joint-sector company in association with Southern Petrochemical Industries Corporation. The company came out with a public issue in December 1993.
