RPG Group company KEC International today reported an over two-fold growth in its consolidated net profit at Rs 42.09 crore for the second quarter of the current fiscal.
In a separate development, the company said its board has approved the merger of its group firm RPG Cables with itself in a statement to the Bombay Stock Exchange (BSE).
Under the terms of the proposed merger, shareholders of RPG Cables will get one equity share of KEC International for every 20 RPG Cables shares held by them. The appointed date of the scheme will be March 1, 2010.
"This merger is a natural extension of KEC's role in the energy space and a key element in the energy distribution portfolio that KEC is building into its strategy," KEC International Chairman Harsh Goenka said.
The merger will also enhance value for the shareholders of both companies, Goenka added.
KEC's consolidated net sales rose to Rs 875.11 crore in the latest quarter of the current fiscal from Rs 806.70 crore in the corresponding quarter last year.
"We are confident that the company will continue its growth momentum in the backdrop of a large well balanced order book," KEC International MD & CEO Ramesh Chandak said.
Shares of KEC were trading at Rs 555.25, down 1.73 per cent in afternoon trade on the BSE, while RPG Cables rose 5 per cent to hit its upper trading limit of Rs 25.30.
