Financial Daily from THE HINDU group of publications
Tuesday, Jul 13, 2004
Financial Daily from THE HINDU group of publications Tuesday, Jul 13, 2004 |
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Corporate
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Sick Units Keltec turns around Mony K. Mathew
Thiruvananthapuram , July 12 THE State-owned Kerala Hitech Industries Ltd (Keltec), engaged in the manufacture of sophisticated hardware requirements of aerospace and defence sectors, has turned around after being sick since inception. During 2003-04, the company made a cash profit of Rs 3.02 crore and, for the first time, a moderate net profit of Rs 72 lakh. The turnover improved to Rs 11.12 crore from Rs 8.97 crore in the previous year. The company, which went into production in 1994, was burdened with high interest liabilities on borrowed funds and was referred to the Board for Industrial and Financial Reconstruction (BIFR) in 1999. As per a one-time settlement scheme approved by BIFR, the creditor banks and financial institutions waived accumulated interest of Rs 51.50 crore, while the Indian Space Research Organisation (ISRO) and the Defence Research and Development Organisation (DRDO) came forward to settle the principal amount to the tune of Rs 20 crore by making interest-free advances of Rs 10 crore each against future supplies. The Kerala Government chipped in with an interest-free loan to settle the remaining principal liability of Rs 7.56 crore. This was later converted into equity and Keltec became a debt-free company in 2002. The following year it made a cash profit of Rs 1.50 crore. Mr Johnson Peter, Managing Director, said the company is now geared to achieve a turnover of Rs 18.24 crore and a net profit of Rs 3.40 crore during the current year. It has in hand orders worth Rs 60 crore. He said Keltec has successfully realised hardware such as propellant tanks, liquid engines, control system components, motor cases, nozzles and other control components for the PSLV and GSLV projects of ISRO. These apart, it has recently undertaken production of engine components for light combat aircraft, missile casings and major sub-systems for DRDO and mechanical robots for Bhaba Atomic Research Centre. He said steps have been initiated to expand the production capacity of the company to enable it to receive more orders from ISRO and DRDO. These organisations are now approaching other manufacturers for their requirements in view of the capacity constraints of Keltec, its proven technology and well- experienced technocrats notwithstanding, he said.
More Stories on : Sick Units | Hardware | Kerala
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