ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Impressive Recovery

Impressive Recovery Hansavivek SIEMENS INDIA has recorded impressive recovery during 1978-79 after the previous year's shortfall in sales and profits caused by prolonged labour unrest at its production units in Bombay. Sales improved by 32 per cent to reach Rs 93.86 crores, orders booked totalled Rs 117.4 crores, which were about 38 per cent higher than last year and profit before tax of Rs 7.89 crores showed an increase of 36 per cent. The unchanged dividend of 16 per cent was covered 2.27 times against only 1.45 times previously. The income-tax. officer has pro- visionally determined 25 per cent of the dividend to be exempt from tax under section 80J/80K of the Income- tax Act. This performance looks all the more pleasing when viewed against the background of non-availability of materials, power shortage and transport bottlenecks, Almost all the divisions performed well. The power engineering division encountered good demand for its entire product range, particularly on account of tremendous emphasis placed by government on rapid power development and on increasing the installed capacity of cement. The company has received a 'letter of intent' from the Central government for expansion of switchgear product range. The components, data and communication division showed a significant improvement and is looking ahead to brighter prospects in view of modernisation programme of railways! The medical engineering division's turnover was lower by 5 per cent compared to the previous year duo to shortage of x-ray tubes. Construction of the new switchboard factory in Calcutta has been completed and commercial production started from January last. Construction of new factory at Nasik in Maharashtra will start on receipt of the necessary sanction from the Central government. The company has developed a sophisticated Tele- perm-C which finds special application in solving complex process automation tasks in super thermal power stations. This will go a long way in modernising instrumentation and control system in the field of power generation. The chairman, C M Khatau, envisages good future prospects for the company. He expects sales to exceed Rs 100 crores this year. He, however, feels that net profitability may not rise beyond last year's level, because inflationary trends in the economy are likely to erode profit margins. The company has in hand orders worth about Rs 85 crores, EXCEL INDUSTRIES has achieved further improvement in its performance with higher sales but at lower profit margins. Although, both depreciation and taxation have taken away bigger slices of profit, dividend raised by a point to 19 per cent is covered 2.61 times against 2.50 times previously. The directors say that the company has been able to keep up its record of improved working results in spite of numerous problems faced by it. Exports were lower at Rs 68 lakhs against Rs 113 lakhs of the previous year. The company incurred capital expenditure of Rs 203 lakhs, which was largely met out of retained earnings. An application has been made to bankers for increasing The Week's Companies (Rs Lakhs)

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