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

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Making Power Generation Profitable

Making Power Generation Profitable Kumaran Pola TATA ELECTRIC COMPANIES com- prising Tata Hydro-electric Power Supply Company, Andhra Valley Power Supply Company and Tata Power Company have recorded a growth of 11 per cent in net sales to Rs 812.33 crore and an impressive 82 per cent growth in net profits to Rs 81.29 crore during the year ended March 31, 1990. The improvement in profitability resulted from a reduction in the expenses-to-sales ratio from 0.91:1 during to the common board of-directors of

Beyond Pharmaceuticals

Beyond Pharmaceuticals ed out to 11.96 per cent in 1989-90 compared to 11.42 per cent (annualised) during the preceding year. The higher net profit margin on sales at S.72 per cent compared to 5.45 per cent in the preceding year made good the nominal decline in the assets utilisation ratio to 109 in 1989-90 from 2.10 (annualised) during 1988-89. The return on owners' equity too was marked up to 20.88 per cent from 18.82 per cent (annualised) in the preceding year The low debt/equity ratio of the company at 0.23:1 in 1988-89 moved up to 0.32:1 in the latest year in view of the short-term bank loans contracted by the company. There was no long-term debt in the company's capital structure. The current ratio of the company moved up from 2.93 to 3.17 in the latest year due to noticeable increases in inventories, receivables, cash and bank balances and other miscellaneous assets.

Expansion Plans Make Headway

Expansion Plans Make Headway Kumaran Pola SUPREME INDUSTRIES' net sales crossed the Rs 100-crore mark and reached Rs 105.17 crore during the year ended June 30, 1990. This was 37 per cent higher compared to Rs 76.83 crore during the preceding year. The Injection Moulding Division at Andheri operated at full capacity. The division had undertaken the challenging assignment of developing moulds for electric voting machines for ECIL, Hyderabad, and supplied 75,000 units within the time-frame set by them. The PVC Pipes and Fittings Division handled 9,523 tonnes as against 8,176 tonnes in the preceding year.

Hit by Cost Escalation

Hit by Cost Escalation Kumaran Pola SYNTHETICS AND CHEMICALS, despite a 15 per cent increase in sales to Rs 119 crore, experienced a setback in profits and profitability in the year ended March 31, 1990. Operating profits declined by 12 per cent and net profit by 39 per cent. The expenses-to-sales ratio worsened latest year. According to the directors, the

Diversification by Acquisition

Diversification by Acquisition Kumaran Pola VXL INDIA recorded a 48 per cent increase in sales on annualised basis during the 15-month period ended March 1990, from Rs 153.80 crore during the 18-month preceding period to Rs 189.29 crore. Raw material cost spurted at a higher annualised rate of 66 per cent. There were increases in other costs too. As a result, the expenses-to-sales ratio worsened from Operating profits showed a lower growth

Larger Reliance on Imports

Larger Reliance on Imports Kumaran Pola BERGER PAINTS.INDIA, despite keen competition in the market, increased its net sales by IS per cent on annualised basis to Rs 85.34 crore during the year ended March 31, 1990, Operating profits increased at a lower rate of 3 per cent (annualised) due to escalation in raw material cost and non-availability of critical items. The company reduced the interest costs by 11 per cent on annualised basis which helped in increasing net profits by 39 per cent on annualised basis to Rs 1.76 crore

Riding the Shipping Boom

Riding the Shipping Boom Kumaran Pola GREAT EASTERN SHIPPING achieved the highest ever turnover and profit during the year ended March 31, 1990. According to the directors, this was possible on account of a larger fleet as well as a very buoyant freight market. The main income of the company showed a 43 per cent increase on annualised basis to Rs 213.10 crore during 1989-90. Due to more than proportionate increases in operating expenses, the growth in operating profit was lower at 27 per cent (annualised) and in net profit at 13 per cent (annualised). The directors state that the profits would have been higher but for the explosion on one of the company's tankers,' Jag Laxmi'. The approximate loss of profit due to the explosion was Rs 2 crore.

Impressive Turn Around

Impressive Turn Around kumaran Pola SANDUR MANGANESE AND IRON ORES showed a 40 per cent increase in sales in the year ended March 31,1990 to reach Rs 77.85 crore. A drastic reduction in expenses to sales ratio from 0.92:1 in a 159 per cent increase in operating profits

Wide Product Range to the Rescue

Wide Product Range to the Rescue tionate increases in cost of production. Raw material cost increased by 13 per cent, employees cost by 18 per cent and other expenses by I5 per cent. There were spurts in interest expenses by 11 per cent and tax prbvisten by 71 per cent. Therefore, operating profits increased only nominally by 1 per cent and net profits in fact declined by 39 per cent (all an- nualised). According to the directors, there were frequent increases in the price of paper, one of the key inputs for laminates. The prices of the finished goods could not fully absorb the escalation in the costs of inputs. These problems were compounded by the unscheduled power cuts which severely affected production.

Improved Sales Abroad

Improved Sales Abroad OTIS ELEVATOR COMPANY (India) reported a marginal decline in net sales by 2 per cent (annualised) to Rs 54,45 crore during the year ended March 31,1990. Stagnant conditions in the construction industry and the agitation by the workmen in the Kan- divli factory and the regional offices were, according to the directors, the factors behind the subdued performance. However, the company raised its exports by 77 per cent (annualised) to Rs 1.88 crore and its other income by 33 per cent (annualised) to Rs 1.48 crore.

Quickening Tempo

BAJAJ TEMPO increased its sales, net of excise duty by 30, per cent on annualised basis from Rs 326.57 crore during the 18-month period ended March 31, 1989 to Rs 196.09 crore during the 12-month period ended March 31,1990. Due to general reductions in costs as reflected in expenses to sales in 1989-90, the company more than doubled

Machines for All

Machines for All Kumaran Pola GREAVES COTTON achieved a new peak in net sales during the year ended March 31, 1990 at Rs 212.16 crore representing an increase of 11 per cent on an- nualised basis over Rs 142.78 crore during the 9-month period ended March 31,1989. The other income of the company also showed a similar increase by 11 per cent from Rs 2.97 crore to Rs 4.40 crore. The pressure of costs remained high with the expenses to sales ratio being 0.96:1 in 1989-90 as compared to 0.95:1 in the preceding year. The raw material costs increased by 16 per cent and employees costs by 5 per cent on an annualised basis during the year. Other expenses and adjustments in respect of purchase of finished goods, etc, spurted by 13 per cent.


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