Shanthi Gears sees increase in net profit

: Shanthi Gears Limited of the Murugappa group has registered a 25.6 per cent rise in its net profit during July-September 2018.

The net profit touched Rs 9 crore against Rs 7.16 crore during the corresponding period last year and the income grew to Rs 62.87 crore (Rs 56.88 crore), a press release from the company said here.

For the half-year period ending September 30, the net profit was Rs 17.50 crore (Rs 12.22 crore) while the total income was Rs 127.18 crore (Rs 116.03 crore), the release said.

The profitability and lower capital invested during the quarter ending September 30 ensured return on average capital employed (ROCE) at 22.4 per cent from 17.3 per cent in the same period last year, it said.

Free cash flow of Rs 10.2 crore in the second quarter ending September 30 was helped by better networking capital and higher profits, the release said.

The order book of the company during the quarter stood at Rs 73.7 crore (Rs 56.4 crore), it said.

Shanthi Gears continues to expand customer base, enhance dealer network and improve production capabilities through investments in modern technologies, it added.