Ibp Flares Up On Opening Of Selloff Bids

Shares of public sector undertaking IBP today soared above 10 per cent to close at Rs 573.30 today hitting the all-time high backed by reports that government had invited bids for the sale of its stake in the company. The stock also touched an intra-day high of Rs 588.40. More than 92,000 shares changed hands at the IBP counter on BSE.

The stock has been doing very well of late following the government's proposal for a strategic sale of its stake in the company. There were reports that the government invited financial bids for divestment of its 33.6 per cent of its total 59.60 per cent stake in the company.

From a low Rs 384 on 21 December 2001, the scrip has rocketed 48 per cent in a little over a month to the current Rs 570 boosted by divestment plans. Volumes during the same period have gone up to 29,000 from 3,400 shares.

For the third quarter ended December 2001, IBP reported a more than five-fold rise in net profit to Rs 66.62 crore compared to Rs 11.87 crore in third quarter ended December 2000. The surge in net profit came despite a fall in turnover by 5.9 per cent to Rs 2,165.18 crore (Rs 2,301.04 crore). The third quarter results were subject to considering proportionate incremental margins in 1997-98, 1998-99, 1999-2000 and 2000-2001 provisional rates indicated by the Oil Coordination Committee.

The segmental revenues showed that oil marketing accounted for a major share. Out of net sales of Rs 2,137.31 crore in the third quarter ended December 2001, petroleum revenues contributed Rs 2,104.24 crore, while chemicals contributed Rs 31.59 crore and engineering Rs 1.48 crore. In terms of profit, the contribution of oil business was Rs 121.66 crore at the profit before tax and interest level as compared to a loss of Rs 9.50 crore from chemicals business and Rs 2.37 crore from engineering services.