Q3 Numbers See Ingersoll Rand Soar

Shares of Ingersoll Rand sprang up almost 12 per cent to close at Rs 132.95 on the Bombay Stock Exchange (BSE) today following its strong results for the quarter ended December 31, 2001. The scrip closed slightly off its intra-day high of Rs 134.90. About 31,597 shares changed hands on the BSE.

The company announced a 175.5 per cent rise in net profit to Rs 13.39 crore on Thursday. Total income increased 36.5 per cent to Rs 123.28 crore. The net profit figure has been arrived at after considering extraordinary items of Rs 24.8 crore comprising VRS expenditure and write offs during the December 2001 quarter.

Ingersoll Rand (I), a 74 per cent subsidiary of Ingersoll Rand (IR) of USA, was established in 1921 at Calcutta. It became a public limited company in 1977. In the last six trading sessions, the stock lost 8 per cent to Rs 118.95 on 31 January 2002, from Rs 129.05 on 23 January 2002. Volumes dropped to 19,440 from 8,350 in the same period.

The parent company is 125 years old and is among the leading global manufacturers of industrial and commercial equipment and components. The company serves four global growth markets: climate control, industrial productivity, infrastructure, and security and safety. Its product lines include air compressors, architectural hardware products, microturbines, bearings and components, construction equipment, golf cars and utility vehicles, tools, stationary and transport temperature control systems, and refrigerated display units.

The company plans to export components, basically ferrous components, in machined condition, to the parent company. India offers very competitive cast iron-based components compared to other parts of the world, with quality levels that are world class. While machines will continue to account for most of its exports, components could constitute for a reasonable amount of the total sales.

IR has been continuously listed on the New York Stock Exchange (NYSE) since 1906, making it among the top 10 companies achieving such a distinction.