HINDUSTAN ORGANIC CHEMICALS-Higher Profit

EPW Research Foundation GREAVES Growing Market AFTER a 1:2 bonus issue last year, Greaves has furthen improved its performance during 1995-96 with a 42.1 per cent increase in net sales and a 40.8 per cent increase in value of production. This Lalit Mohan Thapar group company is engaged in the manufacture of engines, road rollers, gears, boilers, filters, cranes, hoists, pumps, diesel three-wheeler auto rickshaws, spares and accessories. With a somewhat lower increase in operating expenses, operating profit rose by 45.9 per cent during the year under re view. Lower increases in interest (31.6 per cent), depreciation (8.9 per cent) and tax provision (22.9 per cent) helped the company post a 98.9 per cent higher net profit. Exports too were higher by 12.2 per cent, though imports rose by a steeper 63.7 per cent over the previous year. With the rise in the bottom- line, the company's earnings per share rose from Rs 4.9 to Rs 6.5. Book value, however, was lower at Rs 47.8 compared to Rs 67.2 in the previous year due to the bonus issue last year which increased the equity by 50 per cent.