| |
Results fuel LML back to the three-figure mark
FE INVESTOR BUREAU
NEW DELHI, Dec 29: It's a bull ride again for LML. The counter has touched the Rs 100 mark after more than two years. Ahead of its results announcement, the scrip shot up from Rs 79 to over Rs 96 on December 26,1997 in less than a week.The rise in the price has been supported with a sudden spurt in volumes as well. The daily volumes on BSE zoomed to over four lakh shares against an average daily volume of 50,000 shares. On Monday, the day, the company's board met to take up the results, LML's price shot up from Rs 95.5 to touch a high of Rs 103.5, but closed at Rs 100. The LML counter in the past four days has recorded a volume of 4.17 lakh, 1.13 lakh, 3.66 lakh and 1.79 lakh shares on the BSE.The maiden dividend of 15 per cent, coupled with a decent performance has put a new lease of life into LML's scrip, thereby pushing it beyond the Rs 100 mark. The last time LML's scrip touched the three figure mark was way back in November 1995. After touching a high of Rs 140 in April 1995, it settled at Rs 67 in
January 1996. The renewed interest in the counter is understandable with the company putting up good peroformance, when most of the other two-wheeler manufacturers have struggled to sustain the earlier growth levels. For the year ended September 1997, LML sold 2.94 lakh scooters against 2.57 lakh sold in the corresponding period of last year. Higher volume and price pushed up the turnover from Rs 618.91 crore to Rs 748.72 crore. Despite lower other income, higher interest cost and depreciation charges, profit before exceptional item shot up from Rs 28.51 crore to Rs 46.74 crore. After a write-off of Rs 21.94 crore (Rs 9.58 crore) on account of receivables from Esslon Synthetics, the company managed to improve its net profit from Rs 17.31 crore to Rs 20.30 crore. The company's growth has been much higher than the industry growth rate of around five per cent. LML completed the first phase of its expansion and increased its annual capacity from 2 lakh units to 3 lakh units, which is further being increased
to six lakh scooters per annum.
Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.
|
 |
