International Combustion Net Dips To Rs 1.73 Cr

International Combustion (India) Ltd, a manufacturer of industrial equipment, has reported that its net profit for the year ended 31 March. 1997 slumped to Rs 1.73 crore from previous year's Rs 2.85 crore on an increased turnover of Rs 27.14 crore. The company has recommended a dividend of Rs 2.25 per share.

The German firm, Eberhard Bauer GmBH & Co, under whose licence the ICIL manufactures Bauer gear boxes and geared motors, have shown interest in sourcing part of their requirement from ICIL. The company has already started executing trial orders. ICIL is hopeful that Bauer's demand is likely to improve over a period of time.. Despite depressed market conditions, the Bauer division of the company registered a growth of 41 per cent over the previous year.

 

ICIL is also examining the possibility of setting up a foundry for producing high precision castings. These products have a steady demand abroad, especially in Germany. ICIL is also developing a computerised motor testing system which is likely to be launched in the market shortly. The company launched a range of specialised and energy efficient material handling equipment in the market during 1996-97.

The exports increased in 1996-97 over the previous year, and foreign exchange earnings for the year was Rs 1.87 crore as against Rs 1.18 crore in 1995-96.

Sources in the company said that profit margins had slumped due to the recession in the engineering industry in general which also hit the capital equipment manufacturing industry. Besides, regression in demand in the iron & steel, mining and other related industry also delayed the implementation of various projects.