The Hindu Business Line : Power is its strength for Philips Carbon

THE counter of Philips Carbon Black, an RPG group company, is seeing strong traded volumes and valuation growth on the proposed 30-MW power project at Durgapur in West Bengal.

According to market sources, the project is estimated to clock a conversion cost of 10 paise per unit, while sale price has been tentatively estimated at Rs 2 per unit.

Mr Alok Banerjee, V-P (Finance) of the company confirmed that the project is on the anvil. The project is likely to cost around Rs 100 crore. "The company wants to sell the power to a power trading company which will offer the best price," the company official added.

The commercial deal with Adani Exports for sale of 7.5 MW power from its 12-MW plant at its Vadodara unit at a profitable rate of Rs 1.75 per unit has helped the company to generate a Rs 15 crore additional revenue, and shore up its bottomline in the previous fiscal.

The company was now in the process of preparing a plan for raising finance for the Durgapur power project. "Consultant's reports are awaited", Mr Banjeree said.

On Friday the stock finished at Rs 94.55. On Thursday it had created its new 52-week high at Rs 116. The two-week average traded volume in the counter has been over 1.8 lakh shares.

Godfrey jumps on bonus talk

The Godfrey Phillips stock is understood to be moving up on talk of bonus issue as also a proposal for stake hike by Philips Moris, the foreign promoter of the company.

The corporate spokesperson of the company, however, declined to comment on both the subjects. According to market sources, even after proposed dividend of 190 per cent for 2004-05, the Street was expecting an issue of bonus shares on the back of higher profitability.

The foreign promoter currently holds 35.93 per cent stake in the company, while the K.K. Modi group has 36.80 per cent holding. The public holding is placed at 18.57 per cent.

The stock on Friday moved up by 1.54 per cent to close at Rs 792 on the BSE. Its 52-week high on the exchange was recorded at Rs 925 on March 12 last.

Spanco Tele active on biz hopes

THE stock of Spanco Telesystems, a BPO outfit, is said to be active on the bourse on increased flow of contracts, both from domestic companies as also overseas. The stock's two-week average traded quantity is 2.79 lakh shares on the BSE.

On June 8 last, it created its new year high at Rs 91. On Friday, it finished at Rs 80 after touching the session's high at Rs 84.35 with a traded quantity of 81,490 shares on the BSE.

According to dealers, among the recent big deals of the company was with BSNL and a Pakistan call centre. Market analysts said the company has shown a sharp growth in revenue and profits.

The company has reported net profit of Rs 9.20 crore for 2004-05 against Rs 5.56 crore in the previous financial year. EPS has also improved to Rs 8.77 from Rs 7.96.

Jayanta Mallick

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