The Hindu Business Line : Samtel Color jumps on strong show

THE stock price of Samtel Color, a company into manufacturing of picture tubes, was up sharply in today's trading after its strong financial results for the fourth quarter.

The company reported a net profit of Rs 18.6 crore for the March quarter compared with net profit of Rs 12.2 crore in the corresponding quarter last year, a growth of 52 per cent.

For the full year, the net profit increased by 416 per cent from Rs 12.5 crore to Rs 64.5 crore.

In today's trading, the stock gained 14.27 per cent at Rs 120.05 on the BSE with volumes of 16.83 lakh shares; on the NSE, it gained 15.36 per cent at Rs 120.55 with volumes of 37.28 lakh shares.

Of the total shares traded, 19.98 per cent and 20.74 per cent were marked for delivery on the BSE and the NSE respectively.

"Company moving into high value products such as 29 inches picture tubes has improved the margins," said Mr Nikhil Thacker, Asst Vice-President (Research), Asit C Mehta Investment Intermediates.

He said the outlook for the company is bright due to entry of multiple TVs in a single home and people going for large TV screens will drive growth for the company.

The company's additional capacities that will go on streamline in the third and fourth quarters of this fiscal would further help the company to grow.

According to the company, outlook remains positive, as the customer demand in both local and global markets is encouraging.

It is estimated that the domestic market will continue to grow at over 15 per cent per annum for the next few years, the company said.

It said the current manufacturing lines are expected to deliver continuous productivity improvements.

The capacities towards the end of this financial year should be double of capacities in fiscal 2004 after the establishment of new lines.

The company's line 4, which has capacity of 1.5 million 29-inch picture tubes, is expected to be operational by the third quarter of this fiscal.

Line 5, with capacity of 2.5 million mid-sized picture tubes, is expected to be operational by end of this fiscal.

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