EIL to form JV company with Italian firm

The Cabinet today approved the formation of the joint venture company and authorised EIL to pick up 30 per cent stake in the proposed venture, Information and Broadcasting Minister P R Dasmunsi told reporters after the meeting of the Union Cabinet.     

Set up in 1965, EIL provides engineering and technical services to petroleum and other industries. For the quarter ended March 2008, EIL posted a net profit of Rs 56.68 crore, compared to Rs 42.52 crore during the same quarter in 2007.     

Total income for the quarter increased to Rs 287.77 crore from Rs 209.26 crore in the year-ago period. For the year ended March 31, 2008, the company posted net profit of Rs 194.60 crore, against Rs 142.99 crore a year ago.     

The Board also recommended a final dividend of 70 per cent on the paid up share capital. Tacnimont SPA is an international EPC contractor with a strong presence in oil and gas, petrochemical and chemical sector. Shares of EIL were trading at Rs 576 down by 2.12 per cent on the Bombay Stock Exchange.