The Hindu Business Line : Jessop net rises 107 pc; to pay 8% dividend

Jessop & Co Ltd (JCL) today reported 107 per cent rise in net profit from Rs 4.82 crore in 2004-05 to Rs 9.98 crore for 2005-06. The board of directors recommended eight per cent dividend to its shareholders, bringing the company back to the dividend list.

However, turnover recorded marginal growth from Rs 77.95 crore to Rs 78.76 crore.

Commenting on the improved profitability, Mr P.K. Ruia, Chairman, said, "It's quintessentially a reflection of better cost control and effective outsourcing. We remain committed to generate more value for every stakeholder of JCL, be it employees, government or shareholders. With an order book position of Rs 130 crore, the future looks brighter indeed for Jessop.''

Jessop & Co, a 218-year-old Kolkata-based engineering giant, was brought under the public sector fold and in 1995 came under the purview of the Board for Industrial and Financial Reconstruction (BIFR). Mr Ruia took over the company in 2003 and in April this year, the BIFR discharged Jessop from its fold following a capital restructuring of the company.

Though listed at the Calcutta Stock Exchange, Jessop has very limited public holding. Accordingly the company's shares are hardly traded.