CHENNAI, AUG 25: In what could be termed as a prelude to a long-drawn battle over Sri Vishnu Cements Ltd (SVCL), the board of India Cements Ltd-controlled Raasi Cement on Tuesday allowed the management to make further investments in SVCL, over and above the 40 per cent stake it is allowed to presently. This enabling provision would help RCL pick up further shares, if required, to increase its stake in SVCL.The company is in the midst of a battle to regain the possession of 40 per cent stake in SVCL which the erstwhile promoter BV Raju had transferred to nine `independent' investment companies.
Meanwhile, RCL has posted impressive results for the first quarter of the current fiscal. The company has posted a profit of Rs 6.24 crore in the first quarter of the current fiscal as against Rs 6.55 crore registered for fiscal 1996-97.
During the period under review, the turnover stood at Rs 94.54 crore and operating profit at Rs 12.53 crore. Interest burden was Rs 4.28 crore and depreciation provided Rs 2.01 crore.
The company has significantly improved its operational efficiency. The operating profit margin has improved from 8.42 per cent in the previous year to 13.25 per cent in the current period. Similarly, gross profit margin was higher at 8.73 per cent (3.76 per cent) and net profit margin was 6.60 per cent (1.50 per cent).
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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