Greaves Cotton

THE PROFITABILITY of Greaves Cotton has shown consistent improvement over the past several years. The chairman, Shri L M Thapar expects to maintain this growth for several years. Subsidiary and associated companies will be able to raise their production, thanks to liberal imports of raw materials which would ensure expansion of the company's trading business during the current year. Equity dividend has been raised from 12 to 14 per cent. There is also a two for five bonus issue. The chairman feels that the higher rate of dividend is ulikely to be maintained on the in creased capital but there are reasonable prospects of maintaining the 'increased quantum' of distribution.

The working of the company dur ing the year ended March 1966 has resulted in a higher pre tax profit of Rs. 89 lakhs against Rs 71 lakhs, following a rise in sales to Rs 16.4 crores from Rs 12.8 crores in 1964 65. The provision for taxation is higher at Rs 41 lakhs against Rs 33 lakhs, leaving a net profit of Rs 48 lakhs against Rs 37 lakhs. The equity dividend of 14 per cent is well cov ered by earnings of 33 per cent.