Ipcl Depresses

Price on May 30: Rs 121.25

Price on May 23: Rs 127.75

This scrip declined by 5.08 per cent in the previous week. This was due to the poor performance announced by the company. For the year ended March 1997, IPCL's sales saw a fall of 10.25 per cent to Rs 2,785 crore.

The net profit dipped by 15.56 per cent to Rs 510 crore. Operating profit margin declined from 38.51 per cent to 31.15 per cent. The bottom line would have been hit even further, had it not been for the tax liability cushioning it. Tax outgo declined 77.33 per cent to Rs 83 crore.

 

The company attributes this poor performance to the depressed prices as well as lower import tariffs of chemical and petrochemicals products. Last year, the petrochemical industry went through a major down trend, especially in the first half. Had petrochemical prices not improved in the second half, IPCL's performance would have been even worse.

Sail

Price on May 30: Rs 18

Price on May 23: Rs 21.25

This scrip lost 15.29 per cent in the previous week. This fall was mainly on account of bad performance posted by the company. For the year ended March 1997, sales and other income declined by 2.56 per cent to Rs 14,739.65 crore from Rs 15,127.16 crore.

Its gross profit margins in 1996-97 also declined to 8.76 per cent from 12.58 in the previous year. The net profit declined by 60 per cent to Rs 527.21 crore in 1996-97 from Rs 1,381.61 crore in the previous year.

This lacklustre performance can be attributed to slow growth rate in steel demand, which in turned forced Sail to lower its production and go in for drastic cost cutting. In 1996-97, the company achieved a three per cent reduction in costs.

Cox & Kings

Price on May 30 Rs 95.50

Price on May 23 Rs 105.75

This scrip declined by 9.69 per cent in the previous week. This was mainly on the news that the Reserve Bank of India (RBI) has revoked the approval granted to the company to set up a private bank as the company had failed make any progress since its approval in October 1995.

According to reports the company faced problems in raising the minimum capital of Rs 100 crore for the bank.

PAL-Peugeot

Price on May 30 : Rs 5.95

Price on May 23 : Rs 5.60

This scrip gained 6.25 per cent in the previous week. This was mainly on the news that Doshis of Premier Automobiles are planning to off-load their stake in this joint venture in favour of the French partner. The performance of PAL-Peugeot for the year ended September 1996 was very bad.

Sales increased from Rs 255.89 crore in June 1995 to Rs 344.27 crore in September 1996. It had a net loss of Rs 97.44 crore. The reason cited for this poor financial performance include labour problems and consequent lock out and an unfavourable trend in the exchange rate of the rupee and the French franc which caused an increase in the cost of imported raw material.