The Hindu Business Line : Lakshmi Mills posts lower sales

Coimbatore May 21 Despite posting lower net sales and slipping into the red in the fourth quarter of last year, Coimbatore-based Lakshmi Mills Company has recorded higher net profit due to exceptional items in the final quarter of the year.

The company's board has recommended a dividend of 12 per cent.

According to the audited financial results, the net sales in Q4 of 2006-07 was Rs 31.68 crore compared to Rs 36.51 crore in the corresponding quarter the previous year. After providing for expenditure, interest and depreciation, the company posted a loss of Rs 2.66 crore in the last quarter of last year before tax and exceptional items as against a profit of Rs 2.55 crore in the same period the previous year.

But the reversal of electricity tax due earlier and profit from the sale of land resulted in an inflow of Rs 6.76 crore as exceptional item and after providing for VRS payment, the net profit before taxation stood higher at Rs 3.09 crore in the January-March quarter of 2006-07 (Rs 1.94 crore). After adjusting current and deferred tax and FBT, the net profit was Rs 2.86 crore in Q4 of last year (Rs 1.44 crore).

For the full year 2006-07, the company posted lesser net sales at Rs 141.64 crore compared to Rs 150.64 crore in 2005-06. The 2006-07 full year's net profit stood at Rs 5.57 crore (Rs 6.42 crore). The full year's EPS was Rs 80.19 (Rs 92.37) inclusive of exceptional items and after exclusion of exceptional items the full year's EPS was Rs 27.41 (Rs 77.57).