New Delhi, Mar 19: Goodyear India has registered a net profit of Rs 10.32 crore for the year ended December 31, 1997, an increase of nearly 25 per cent over the previous year's figure of Rs 8.27 crore. The company's turnover has increased marginally to Rs 546 crore, up from Rs 545 crore in the previous year.Goodyear India has been able to show a 25 per cent increase in its net profit, even though its turnover has increased marginally, on account of a higher other income of Rs 3.13 crore, as against Rs 2.23 crore in the previous year.
The company has also made a lesser provision for taxation at Rs 4.66 crore in the period, as against Rs 5.30 crore in the previous year. Goodyear India has also been able to limit its expenditure to Rs 498.73 crore, almost at the same level of Rs 498.79 crore.
According to a company release, chairman and managing director RL Swanson told the board meeting that the improved performance has been made, despite adverse market conditions and low-profitability in the tyreindustry. The board has recommended a dividend of 30 per cent.
Total reserves and surplus of the company rose to Rs 117.87 crore during this period from Rs 44.81 crore in the corresponding period the previous year.
Major inroads have been made in the truck and farm markets with the Power King, Power Rib and DT 195 brands, which have become popular in the market.
INSIGHT
Lower tax provision helps
Goodyear has managed to curtail its expenditure at the previous year's level, while its operating income has risen marginally. As a result, the company's operating margin has improved from 6.78 per cent to 7.28 per cent.
Even though the company's interest outgo has increased, a 67 per cent rise in other income has enabled the company to improve its gross margin from 3.31 per cent to 3.74 per cent. Further, a lower tax provision has helped the company to shore up its bottomline.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
