Uninspiring Results

RAS KMK Lamipack, rechristened RAS Propack Lamipack, failed to enthuse investors with its working results for December 1996. Even after the first full year of commercial production, the company has not fully stabilised production. The companys 15 months commercial operation for the year to December 1996 resulted in operating income of Rs 12.21 crore. With total expenditure at Rs 19.57 crore (including interest of Rs 6.63 crore), which is higher than sales, the company suffered a gross loss of Rs 7.2 crore. Depreciation provision of Rs 3.01 crore, if added to the gross loss, will result in a net loss of Rs 10.28 crore. The company, at the time of the public issue, projected a sales turnover of Rs 36.08 crore and net profit of Rs 9.11 crore. The investors, on the expectation of a fair return from the investment, gave overwhelming support to the public issue. At the present price of around Rs 6, investors have gained nothing from the initial investment.

 

Market price: Rs 6.75, EPS: -2.37, 52-week high/low: Rs 14/4