Chennai, July 11: Powered by a 20 per cent growth in the exports market, MM Forgings has bucked the trend in the auto components industry and posted a 10 per cent increase in its bottomline for fiscal 1997-98. The company recorded a turnover of Rs 51.27 crore as against Rs 49.74 crore reported in the last fiscal. Other income increased from Rs 1.73 lakh to Rs 8.7 lakh. Operating profit increased by 20 per cent to Rs 8.6 crore compared from Rs 7.15 crore in 1996-97.Depreciation was marginally higher at Rs 1.41 crore as compared to Rs 1.21 crore in the previous fiscal and interest costs were slightly lower at Rs 3.31 crore as against Rs 3.72 crore in 1996-97.
The company has made a provision of Rs 15.7 lakh this year.
MM Forgings is perhaps the only company in the auto components industry to record a positive growth in the bottomline, despite the downtrend in the domestic automobile industry. The company exports 60 per cent of its production which has propped up its bottomline.
For the next fiscal, MMForgings expects the export market to grow by an additional 20 per cent. The company has announced a dividend of Rs 3.50 per share.
MM Forgings also obtained shareholder approval for taking over Gears India (Madras) Ltd, a private company based in Chennai, for a consideration of around Rs 2 crore. The unit will be used for machining of forgings.
The company has also recorded a marginal growth in turnover in the first quarter of the current financial year (1998-99) with net sales at Rs 13.33 crore compared with Rs 11.03 crore for the same period last year. The net profit for the first quarter stood at Rs 89.73 lakh compared with Rs 73.35 lakh in the corresponding period last year.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
