The Hindu Business Line : Samtel Q2 net up 369%

PICTURE tube manufacturer SAMTEL Color Ltd has posted a rise of 369 per cent in net profit to Rs 14.7 crore in the second quarter of the fiscal from Rs 3.1 crore in the same period last year. The company's net revenues were up by 19 per cent in the period to Rs 261.8 crore on the back of encouraging export growth. The export revenues in fact grew by 129 per cent to Rs 64.1 crore from Rs 28 crore.

Commenting on the company's performance so far this fiscal, Mr Satish Kaura, Chairman and Managing Director, Samtel Color, said, "We have had a successful first half, where our revenues have been driven by volume growth and our earnings by improved productivity. We are sensing an attractive business opportunity given the migration of production to Asian region, while global demand remains stable. We recorded higher levels of efficiencies, which are sustainable, and our business model has been structured to produce more CPTs (colour picture tubes) at relatively lower levels of fixed and variable costs. Given the strength of our operations and encouraging levels of customer demand, we remain positive on the performance outlook going forward."

Meanwhile, the company's board on Saturday also approved a plan to establish a new line (Line 5) at its unit at a cost of Rs 140 crore. According to a company release, the encouraging order book position, long-term customer contracts and robust demand outlook were key motivations to establish Line 5.