Ashok Alco-Chem

Sales income of the company, in value terms, declined despite a rise in the quantity sold .This was due to lower price realisation of finished products. In the year ending March '97, income from sales fell by 16.9 per cent to Rs 25 crore (Rs 30 crore). Operating profit declined by 21.3 per cent to Rs 5.2 crore. Net profit fell 40 per cent to Rs 2.8 crore. Chairman Ashok M Kadakia says: "The performance of the company for the current period, would have been better had the decline in selling prices not preceded the fall in prices of raw material". Profit margins during the first half improved over the corresponding previous year figures. However increased expenditure during the second half cut into the margin. The company's operating profit margin declined to 21 per cent (22 per cent), gross profit margin to 16 per cent (18 per cent) and net profit margin to 11 per cent (15 per cent). The company has finalised plans to set up three projects for downstream products to ensure long term growth. These projects, to

 

be financed through term loans and internal accruals, are expected to be commissioned during 1997-98.

Mkt price : Rs 25, EPS :Rs 8.39, P/E : 2.98