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

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Gift Shares to Celebrate

Gift Shares to Celebrate Hansavivek ASSOCIATED BEARING COMPANY has fared so well during 1979 that the directors have proposed issue of gift shares .on a one-for-two basis besides repeating 20 per cent dividend on equity. They have also recorded their intention to pay a dividend of "not less than 14 per cent" on the expanded capital after the proposed bonus issue. Net sales have expanded, from Rs 17.92 crores to Rs 23.01 crores, and gross profit is up from Rs 3.48 crores to Rs 5.98 crores, reflecting appreciable widening of margins. Dividend is covered 1.9 times as against 1.27 times previously, These results have been obtained despite sizeable loss of production due to severe power cuts during the second and third quarters of 1979. Internal generating capacity then available was not adequate to make good the shortfall in power supply. During this period, the company produced and built up inventories of essential components which led to improved output in the long run. With improvement in the power situation, production was stepped up considerably during the last quarter of 1979, thereby enabling the company to turn out substantially better results than was expected. The directors state that demand for the company's bearings continues to be good. Of the total increase in bearing sales during 1979, 57 per cent was due to original equipment manufacturers, The automobile industry accounted for 53 per cent share as against 47 per cent in 1978. The company has a product range of 31 types of ball bearings and 45 types of taper roller bearings. It was also a good year for the textile industry. Sale of textile items by the company would have been higher but for shortages and nonavailability of certain items and the power cut. With the addition to its power generating capacity, the company has planned for some increase in production during the current year.

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