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

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INDIAN HUME PIPE-Sharp Fall in Profit Margins

RECKITT AND COLMAN OF INDIA (RCl) has fared well during 1988. The board has recommended payment of an unchanged dividend of 30 per cent.on the capital enlarged by a one-for-one bonus issue. The bonus shares were allotted on November 2 last. The company has earned a gross profit of Rs 12.09 crore against Rs 9.97 crore in the previous year following sales of Rs 64.49 crore against Rs 51.74 crore. These figures show a small decline in profit margins. Although tax liability has taken away more, net profit is Rs 6.75 crore (Rs 5,47 crore). The distribution is covered 2.67 times by earnings as against 4.34 times previously. The company has been able to plough back Rs 4.23 crore out of the year's profits with the result that total reserves, which stood at Rs 13.60 crore at the commencement of the year, aggregated Rs 13.78 crore at the year end after adjustments including that for capitalisation of Rs 4.20 crore for purposes of bonus issue.

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