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

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In the Capital Market

poor results for 1985-86. Gross profit has slipped from last year's Rs 108 lakh to Rs 88 lakh even though turnover has been a little higher at Rs 100 crore against Rs 97 crore, reflecting diminution of profit margins. Net profit has gone down from Rs 59 lakh to Rs 44 lakh. Dividend has been stepped up from 8 per cent to 15 per cent and is covered 1.32 times by earnings as against 4.98 times previously. This outcome is attributed to stiff competition in the market as a result of the continued recessionary conditions in the engineering industry. The company has acquired the engineering section of Shree Ram Mills located at Udhna in Gujarat comprising machine tools accessories division and foundry. The operations of this section during 1985 resulted in a loss of about Rs 13 lakh. The company has undertaken a Rs 285 lakh programme of modernisation of the manufacturing facilities and upgrading the designs of machine tools. A part of the cost of the project is being financed by term loans from financial institutions.

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