Leading the Consumer Electronics Boom

Leading the Consumer Electronics Boom Hansavivek PEICO ELECTRONICS AND ELECTRICALS has suffered a sharp setback in its working during 1985 as reflected in the drop in gross profit from previous years Rs 15.55 crore to Rs 11.05 crore despite a higher turnover of Rs 240.05 crore against Rs 209.38 crore. Margins have been squeezed between rising costs of raw materials, components and wages and the company's inability to increase prices correspondingly in a highly competitive market. Moreover, there was prolonged disruption of production at the Kalwe factory due to disturbed industrial relations. Interest cost rose sharply, as requirement of finance increased for the ongoing investment programmes and working capital. Net profit is Rs 3.03 crore (Rs 4.64 crore). Dividend has been reduced from 20 per cent to 15 per cent, which too is slightly short-earned.