Financial Daily from THE HINDU group of publications
Wednesday, Jul 27, 2005
Financial Daily from THE HINDU group of publications Wednesday, Jul 27, 2005 |
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Corporate Results
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Bearings, Castings & Forgings Ennore Foundries Q1 sales up 40 pc Our Bureau
Chennai , July 26 ENNORE Foundries has reported 40 per cent increase in sales in the first quarter of the current year compared to the same quarter last year. The company's turnover increased to Rs 78.24 crore from Rs 55.89 crore earlier. The results include the operations of Ductron Castings, which was acquired from Ashok Leyland in April. Net profit increased to Rs 3.39 crore from Rs 2.25 crore previously. Commenting on the results, Mr V. Mahadevan, Managing Director, said: "The change in product mix helped us improve our topline and bottomline. The company has enlarged the production of high-end castings (blocks and heads) at Ennore Unit to 81 per cent from 65 per cent." He added that the process of increasing the capacity from 24,000 tonnes to 36,000 tonnes at Ductron Castings was expected to be completed by the third quarter of the current fiscal. Meanwhile, the greenfield foundry project is progressing, with preliminary work relating to land acquisition and detailed project planning under way. The project is expected to cost around Rs 120 crore. Funding is being tied up through the issue of equity shares on rights basis, with the rest coming from internal accruals and term loans from banks and financial institutions. The rights issue of 95,05,860 equity shares of Rs 10 each at a premium of Rs 50 per share aggregating Rs 57 crore, in the ratio of 14 shares for every 10 shares held, will be completed on August 9. During the quarter, the company received breakthrough orders from new customers in Italy, Korea, and the US.
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