Indo Gulf profit up 19 p.c.

Indo Gulf Corporation (IGCL), an Aditya Birla group company has announced a net profit of Rs. 251.67 crores for the year 2000-01, a jump of 19 per cent over the previous year's figure of Rs. 212.21 crores. The company has announced a dividend of 24 per cent against 22 per cent in the previous year.

IGCL's net sales for the year were at Rs. 2,198.8 crores, up six per cent over the previous year's Rs. 2,071.36 crores. The gross profit was Rs. 393.29 crores (Rs. 351.25 crores). The company provided Rs. 145.27 crores (Rs. 148.68 crores) for interest, Rs. 117.62 crores (Rs. 111.44 crores) for depreciation and Rs. 24 crores (Rs. 27.6 crores) for tax.

IGCL's copper division recorded sales of Rs. 1,690.34 crores (Rs. 1,266.73 crores). The major growth drivers have been strong demand in the telecom, electronics and power sectors coupled with proactive initiatives. During the year, the company forayed into export markets of South East Asia and Middle East countries. Birla Copper has attained the status of most preferred supplier, commanding more than 42 per cent share of the domestic market.

The commissioning and stabilised operations of the DAP and PMR plants have contributed significantly to higher realisations of its by-products viz. sulphuric acid and anode slime. These were previously sold at non-remunerative prices in the export markets. The capacity expansion under way is slated to be complete by the first quarter of the current year.

Dahej Harbour and Infrastructure (DHIL), the company's wholly owned subsidiary, which owns the jetty of Birla Copper, is in the process of emerging as a strong self sustaining business entity. DHIL has handled a total of 12.53 lakh tonnes of cargo during the year 2000-01 of which 444 per cent accounted for commercial cargo. During the year, it berthed vessels upto 65,000 DWT.

IGCL achieved a turnover of Rs. 508.5 crores in its fertiliser division lower by 37 per cent vis-a-vis that of the previous year's figure of Rs. 804.6 crores. An interim reassessment of the urea capacity and the consequent reduction in the retention price by the government coupled with the restriction on production, has severely affected the profitability of the fertiliser business during the year.

The reassessment of the capacity will result in under-utilisation of productivity during the current year. As a proactive measure, the company has adopted aggressive and innovative marketing strategies.

TVS-Suzuki

TVS-Suzuki, a leading two-wheeler manufacturer, has increased its turnover by 15 per cent to Rs. 1,868 crores in the financial year ended March 31, 2001 from Rs. 1,626 crores. Volumes of sales have also gone up by 3.2 per cent to 8.63 lakh numbers from 8.36 lakh numbers in the previous period. The net profit after tax was lower at Rs. 61 crores against Rs. 87 crores due to an increase in marketing expenses.

Mr. C.P. Raman, President has stated in a release that despite negative growth in the volumes of two-wheeler industry, the company could increase its sales by introducing new models such as Fiero, Sport as well as upgrading existing products in to the market. The company has 23 per cent market share in the two wheeler industry. Despite the shrinking market for mopeds, TVS mopeds continue to retain leadership.

Raymond

Raymond has reported a net profit of Rs. 332.22 crores for the year 2000-01 against Rs. 31.71 crores in the previous year. The board of the company has recommended a dividend of 30 per cent (15 per cent).

Net sales were lower at Rs. 1,457.06 crores against Rs. 1,657.91 crores. Other income amounted to Rs. 15.73 crores (Rs. 18.38 crores). The profit before interest, depreciation and tax was also lower at Rs. 1,287.45 crores against Rs. 1,418.39 crores. The company provided Rs. 185.34 crores (Rs. 257.90 crores) for interest, Rs. 79.91 crores (Rs. 94.58 crores) for depreciation and Rs. 31 crores (Rs. 4.25 crores) for tax. The lower operating profit has been attributed to keen competition in both domestic and international markets.

Exceptional items for the year resulted in a profit of Rs. 339.17 crores against a loss of Rs. 27.66 crores last year. The profit comprises net surplus on divestment of cement and steel divisions and other settlement claims consequent to the transfer amounting to Rs. 447.18 crores and the loss on sale of zero per cent interest debentures of Reliance Industries amounting to Rs. 98.03 crores as also a loss of Rs. 9.98 crores as other non-recurring expenditure. The steel and cement divisions incurred a net operating loss of Rs. 68.20 crores up to the respective dates of divestment.

Also, the scheme of amalgamation of Raymond Calitri Denim, a wholly owned subsidiary, was approved by the Mumbai High Court with effect from April 1, 2000 and the results include the results of the operations of this subsidiary.According to the company, the successful implementation of two major divestments, cement and steel divisions, combined with amalgamation of the wholly owned subsidiary has considerably strengthened the financial position.

Mascon Global

Mascon Global has achieved a net profit of Rs. 69.62 crores in the year ended December 31, 2000 against Rs.10.56 crores in the previous accounting period. The turnover has increased sharply to Rs. 341.86 crores from Rs. 59.12 crores. The directors have recommended a dividend of 30 per cent for the year.

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Section  : Business
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