The Hindu Business Line : Shanthi Gears Q1 net, sales rise

Industrial gear and gear products manufacturer Shanthi Gears Ltd (SGL), Coimbatore, has posted a growth in sales in the first quarter of the current fiscal and the net profit was higher despite increase in raw material and staff cost and a higher provision for depreciation.

The gross sales in increased to Rs 45.96 crore from Rs 38.36 crore in the same period last year and after adjusting excise duty, net sales stood at Rs 40.43 crore (Rs 33.7 crore), a growth of 19.67 per cent. The raw material cost was higher at Rs 17.18 crore (Rs 14.27 crore). Staff cost was marginally up at Rs 3.44 crore (Rs 3.21 crore) and other expenditure was higher at Rs 8.55 crore (Rs 6.26 crore).

The company made a higher provision for depreciation at Rs 3.78 crore (Rs 2.70 crore).

While the profit before tax moved up by 35.82 per cent to Rs 10.05 crore (Rs 7.40 crore), the net profit after providing for taxes jumped by 35.3 per cent to Rs 7.55 crore from Rs 5.58 crore in the same period last year. The company sources attributed the higher sales to a combination of increase in product prices and a higher volume of sales. The raw material cost as a percentage of sales had actually come down to 39.31 per cent in the first quarter of this financial year as against 41.30 per cent in the same period last year. The EPS was Re 0.94 (Re 0.72) (share face value Re 1).