ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
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FORBES FORBES CAMPBELL-Reduced Earnings

and other allied business which would have high export orientation. The central government has recently approved the proposal with equity participation by the three promoters, the Voltas share being indicated as 24 per cent of the total equity capital. The project apart from the direct benefits to the company's Consumer Products Division which will improve its presence in the fast-growing packaged food sector, offers opportunities for the company to widen its range of refrigeration equipment and to establish several joint ventures in the packaging, bottling and moulded-plastics industries. The company intends to invest about Rs 4 crore in the proposed venture. A number of other diversification proposals, including significant equity participation in new joint ventures, are also being currently examined. Their beneficial impact on the company's operations and profitability will become progressively apparent. Meanwhile, the company continues to update technology and significantly expand its existing business activities, especially in the fields of air- conditioners and refrigerators. The company has fared very well during 1987-88 with sales and profits advancing significantly to record their highest levels in its history. While sales amounted to Rs 399 crore against Rs 330 crore, gross profit came to Rs 18.66 crore against Rs 11.76 crore reflecting significant increase in profit margins. Net profit expanded from Rs 4.85 crore to Rs 9.70 crore. The directors have stepped up dividend from 16 per cent to 22 per cent, which is covered 3.45 times by earnings as against 2.36 times previously.

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