Maharashtra Scooters
Operating expenditure increased by 24.76 per cent to Rs 267.63 crore. Sales increased 25.73 per cent to Rs 277.50 crore. This was accompanied by rise in production which increased by 22 per cent to 1,54,356 units scooters. Both production and sales were the highest-ever achieved by the company.
Other income component declined 26.1 per cent to Rs 15.50 crore. This was due to certain non-recurring income not appearing in 1996-97.
Operating profit rose 53 per cent to Rs 9.87 crore. But operating profit margins registered a marginal growth from 2.90 per cent to 3.55 per cent.
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Interest burden showed an impressive decline of 76 per cent to Rs 0.13 crore.
Depreciation 1996-97 rose to Rs 1.13 crore from Rs 80 lakh in previous year. Tax provision fell to Rs 8.20 crore from Rs 9 crore in 1995-96.
Net profit, in spite of increased sales declined by 3.9 per cent to Rs 15.93 crore.
On an equity capital of Rs 5.71 crore, the EPS for 1996-97 works out to Rs 27.58 compared with Rs 28.49 previously. The company has decided to maintain last year's dividend level at 40 per cent.
With reserves totalling Rs 106.72 crore, the company did not disappoint its shareholders and announced a bonus issue in the ratio of 1:1.
On this news, the scrip gained more than 20 per cent, rising from Rs 202 to Rs 241 in 10 days. At current earnings, the scrip discounts around nine times.