Goetze Pat Rises 40% To Rs 22 Cr
Goetze (India) Ltd, an Escort group company, adopted its audited results for 1996-97 which, according to chairman Anil Nanda, achieved its highest level of performance since inception. The total income of the company rose by 22 per cent from Rs 210.53 crore in 1995-96 to Rs 256.94 crore.
The profit before tax (PBT) of Goetze increased from Rs 21.08 crore to Rs 27.06 crore during the period, a rise of 28 per cent.
The profit after tax of Rs 21.81 crore in 1996-97 showed a 40 per cent jump over the previous years figure of Rs 15.58 crore.
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The company has managed to reduce its tax burden from Rs 5.5 crore or 26 per cent of profit before tax in 1995-96 to Rs 5.25 crore or 19 per cent of PBT in 1996-97.
According to a company press release, the tax burden has been reduced by entering into a favourable leasing transaction.
Nanda also announced Goetzes plan to enter into a joint venture with Japanese company Teikoku Piston Rings Co and UK-based T&N, a leading ring manufacturer, to meet the new emission norms for motorcycles and two wheelers.
The Indian company will hold 51 per cent equity out of the total equity of Rs 10 crore in the project which will cost an estimated Rs 20 crore.
Goetze has drawn up a Rs 200 crore capital expansion plan in the next three years to lift the turnover to Rs 500 crore by the year 2000.
The funding will be through internal accruals and external commercial borrowings.
The company was forced to put its annual general meeting (AGM) resolutions to poll yesterday after the AGM scheduled for Tuesday was stalled by minority shareholders.
The shareholders had refused to allow the resolutions to be adopted at the annual general meeting in the face of the company managements refusal to give in to their demand of handing out gifts, according to company sources.