MUMBAI, May 2: Indian Rayon & Industries, an AV Birla group company, has posted a net profit of Rs 214.77 crore in 1996-97, an increase of 16 per cent over last year's Rs 184.75 crore.

The results have surpassed analysts' expectations of Rs 200 crore. The company's net sales have gone up 16.95 per cent to Rs 1,412.56 crore against Rs 1,207.88 crore in the previous year. The board of directors has recommended a dividend of 67.5 per cent, up from 62.5 per cent last year.

The board will meet on Tuesday, May 6, to discuss the issue of bonus shares. The scrip flared up on the Bombay Stock Exchange from Rs 330 on Monday to Rs 396.25 on Friday, following rumours of a bonus issue.

The company had last announced a bonus (1:4) in 1980.

The surge in net profit has been aided by improved performance in all divisions with grey cement leading the pack with a 31.7 per cent growth.

The divisional turnover was Rs 689 crore compared with Rs 523 crore in 1995-96. However, white cement sales remained almost stagnant at Rs 107 crore.

Sales of viscose filament yarn went up to Rs 278 crore from Rs 251.22 crore, an increase of 10.6 per cent. The turnover of the textiles division went up 10.3 per cent to Rs 235 crore from Rs 213 crore in 1995-96.

Carbon black sales also registered a hike of 17.8 per cent from Rs 149.42 crore to Rs 176 crore during 1996-97.

The Jayashree Insulators division of the company recorded a 27.35 per cent rise in turnover from Rs 106.19 crore to Rs 135 crore during the last financial year.

The company has recorded an operating profit of Rs 339.51 crore, up from Rs 284 crore, while operating profit margin improved slightly from 20.25 per cent to 20.69 per cent.

It has recorded a gross profit of Rs 319 crore against Rs 275 crore. The company has posted a turnover of Rs 1,402 crore against Rs 1,641 crore last year.

Its earnings per share stands at Rs 47.74 in 1996-97 compared with Rs 41.10, an increase of 16 per cent.

The company hopes to attain higher growth levels in the current year.

According to a release, the caustic soda plant, sea-water magnesia plant, captive power plant at the rayon division and expanded production capacities of white cement, insulators and textiles will contribute to productivity in the current year.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.