ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Profit Brooks No Adversity

Profit Brooks No Adversity Hansavivek CHLORIDE INDIA has had another successful year, despite many adverse factors. Gross profit was Rs 11.28 crore against Rs 9.14 crore in the previous year following increase in sales from Rs 47.78 crore to Rs 54.23 crore, showing enhanced margins. Net profit is Rs 475 crore (Rs 3.48 crore). These results reflect benefits of increased volume of sales, cost savings through value engineering, improvement in sales mix and steady lead prices, although there was a slump in sales of commercial vehicles and tractors which affected automotive battery sales in the second half of the year. Dividend has been maintained at 24 per cent and is covered 2.45 times against 1.79 times previously. As at the year-end, the company had reserves of Rs 8.69 crore, against a share capital of Rs 8.07 crore. In October last, the board had recommended a bonus issue on a two-for- five basis. Since no such issue can be made before June 1983 under The Week's Companies existing guidelines of government, it is proposed to convene an extraordinary general meeting to consider and approve the bonus issue nearer the projected date of the issue. This would also provide an opportunity to the board to take into account at least the operating results for the first half of the current year and consider if these would support a higher bonus share issue. The company commissioned in August last both this industrial battery factory and the hard rubber manufacturing unit at Haldia; some trial production was also made. The 100 per cent export factory has not yet reached rated capacity, but it has already achieved a high level of exports. With the major investment programme involving modern machinery and sophisticated technology having been completed, the company is engaged in making efficient the complex manufacturing unit at Haldia. The company is also implementing expansion, modernisation and ration alisation schemes at other units. To augment resources for core working capital requirements, an issue has been organised of 15 per cent non- convertible debentures, of Rs 150 lakh. The R and D Centre has developed a special grade battery separator to meet stringent quality parameters of importers for use in strategic equipment and commercial production for export has already started. The company has got a trial order from UK. Last year, the company increased export shipments by 78 per cent to Rs 9.17 crore due to strong demand from Russia and as a result of 100 per cent export factory at Haldia. The management is hopeful that export earnings would continue to improve in the coming years. Commenting on the future outlook, I Sengupta, Managing Director, points out a number of uncertain elements in the current economic and political situation

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