Colour-Chem sales down 3%

Mumbai: The sales turnover of Colour-Chem Ltd for the three months ended 30 June 2003 was lower by 3 per cent at Rs 99.07 crore compared to Rs 102.14 crore achieved in the corresponding period of the previous year.

There was a significant lag in the local demand for agrochemical intermediates caused by a build-up of inventories on account last year's drought coupled with initial expectations of a late monsoon this year. With the timely onset of monsoons, sales of these products are expected to pick up during the current quarter.

Sales of the company's other products were satisfactory. Colour-Chem's exports grew by 9 per cent despite lower realisations due to the weakening of the US currency against the rupee.

The combination of lower sales and spiralling raw material costs during the quarter ended 30 June 2003 has resulted in a significant drop in the company's profits. Colour-Chems' profit before tax for the three months ended 30 June 2003 decreased to Rs 5.30 crore compared to Rs 9.44 crore in the corresponding period of the previous year. The profit after tax for the same period decreased to Rs 3.75 crore compared to Rs 6.27 crore.

At its meeting on 24 July 2003, Colour-Chem's board of directors elected P Lindner as the chairman of the company, in place of Dr G Hencken who has resigned from the board pursuant to his retirement from the services of the Clariant group with effect from 30 June 2003.