Financial Daily from THE HINDU group of publications
Tuesday, Jan 03, 2006


News
Features
Stocks
Shipping
Archives
Google

Group Sites

Corporate - Outlook


Jessop upbeat about higher profits

Pratim Ranjan Bose


Mr P.K. Ruia

Kolkata , Jan. 2

JESSOP & Co is expecting to end the year with higher profits on a marginally lower or same turnover from last year.

Having received the highest ever order for 809 wagons from Indian Railways this year against 305 in the last year, the company produced 71 wagons in December, which is a record. The previous best monthly production was 45 wagons.

"We are targeting production of 150 wagons a month by the end of this fiscal to clear the entire backlog for delivery of the wagons ordered in the last year," the Chairman, Mr P.K. Ruia, told Business Line. The delivery was delayed due to lack of availability of bogie and couplers.

An essential component of wagons, the total production of the Railways' approved manufacturers of bogie and couplers fell substantially short of the wagon procurement projections, resulting in delayed delivery of wagons till the middle of this fiscal.

"To solve the problem, the Railways recently brought the component of `free supplies'. We are now geared to make the most of it by setting stiff delivery targets of 150 wagons a month to clear the backlog as well as maintain the delivery schedule for fresh orders," said Mr Ruia.

Keeping in tune with enhanced production and delivery rate of wagons, Jessop is also expecting a substantial rise in net profit. The company ended 2004-05 with a net profit of Rs 4.82 crore on a turnover of Rs 77 crore.

"We are expecting substantial rise in profitability. However, the turnover of the wagon division will come down substantially as Railways has included bogie and couplers in the list of free supplies," Mr Ruia said.

Wagon being the single largest contributor to Jessop's total sales revenue, the company's turnover may drop. Mr Ruia, however, expressed hope that other divisions such as coach and crane would help maintain the turnover at last year's level.

More Stories on : Outlook

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Stories in this Section
BHEL gets Rs 800-cr order from Nalco for captive power plant


Videocon plans mega FCCB issue to fund expansion
Madras Cements plant voted greenest in India
Reliance Cap, Ventures swap ratio at 5:100
Ruia group to take over two sick Orissa PSUs
US firm picks up 51 pc stake in ICI's rubber chemicals biz
Adherence to Clause 49: IOC convenes EGM to induct more independent directors
Employees protest against closure of mining operations at Kudremukh
Indian Seamless inks pact for a jt venture project in Australia
Sree Sakthi Paper targets 10% market share in South
7 killed in clash at Tata Steel project site in Orissa
Sun Industries plans tie-up with US co
Sanjay Dalmia: His goals remain strictly in business
Jessop upbeat about higher profits
Bajaj Auto December sales up
TVS two-wheeler sales up 11 pc
New CMD for Hind Latex


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line