Lml Net Zooms By 110% To Rs 17.2 Cr

LML Ltd, the Kanpur-based scooter manufacturer, has reported a 110.78 per cent jump in net profits for the six-month period ended March 31, 1997. Net profit has increased to Rs 17.20 crore from Rs 8.16 crore earlier.

Gross profit stood at Rs 28.47 crore as compared with Rs 14.12 crore earlier - a rise of 101.62 per cent. The board of directors have taken on record the unaudited financial results of the six month results.

The company achieved the above profit figures on a 25.65 per cent increase in gross sales, which rose to Rs 363.94 crore in September 1996-March 1997 against Rs 289.64 crore during the corresponding period in 1995-96. The company sold 1,42,703 scooters as against 1,23,458 scooters earlier. The company has written off Rs 4.35 crore as extraordinary loss arising out of the non-recovery of dues from Esslon Synthetics Ltd.

 

The company has also decided to treat the Rs 2.22 crore payment under MAT (minimum alternate tax) as a tax credit and will carry it forward for adjustment out of tax liability for future years. In the board meeting, the directors also took note of the serious capacity constraints faced by the company which have resulted in its failure to meet market demands, according to a company press release.

The release adds that LML is in talks with its Italian partner Piaggio for possible import of components to bridge the demand gap till such time as the additional capacity can be augmented at its Kanpur plant.