The company's sales turnover during the year to March 1996 grew 74.6 per cent to Rs 85.99 crore from Rs 49.25 crore. Its compressors for refrigerators and motors for washing machines reported sales of Rs 10.42 crore, as against Rs 2 lakh in the previous year. Liquidity crunch and higher cost of borrowings limited the growth in profits and profitability. GPM for the year declined drastically to 13.6 per cent from 24.1 per cent. However, gross profit decreased marginally by 4 per cent to Rs 11.97 crore. For the working capital requirements, the company had to borrow heavily from banks. Bank borrowings during the year increased by 54 per cent to Rs 48.04 crore. This is reflected in the cost of borrowing, which rose by 376 per cent to Rs 6.11 crore. With the improvement in sales from diversified products, the company expects to do better in the current year. The company embarked on an indigenisation programme, both for traditional and new products. It has set up a new plant for manufacturing transformers.
Market price: Rs 15.00; EPS: 3.97; P/E: 3.78
