2:5 Bonus From Kirloskar Bros, Dividend At 40%

The announcement made at the company's annual general meeting Wednesday here, was below the market expectation of a bonus issue of 1:1.

Vijay Kirloskar, chairman of Kirloskar Brothers and also of the Kirloskar group, said the resolutions pertaining to the issue of bonus shares will be placed before an extraordinary general meeting to be convened shortly. He promised the shareholders that bonus will be rewarded periodically in the future.

The company has declared a higher dividend of 40 per cent for fiscal 1995-96.

In the same fiscal, Kirloskar Brothers' turnover was at Rs 275.2 crore, an increase of 26 per cent over the previous year. Its profit-before-tax at Rs 10.39 crore was up by 118 per cent over the previous year. As a result of modernisation, Kirloskar said productivity had gone up substantially.

 

The company has automated its cast iron foundry for which 3D imaging was used to visualize the new foundry. Besides, he said the re-engineering of Dewas and Shirval manufacturing facilities had helped to raise output significantly.

During the first five-month period of the current year, he said sales were up by 20 per cent to Rs 98 crore. In the same period, he claimed that almost all major power plants had placed orders with the company.

Prestigious orders were received from majors like Rolls Royce, ABB, Siemens and others.

He welcomed the move to permit issue of non-voting shares. We are keenly awaiting the issue of a notifications by the government to see how this proposal can be implemented, he hinted on the possibility of the company going in for non-voting shares.