The Hindu Business Line : McNally Bharat Q4 net rises

Kolkata June 21 McNally Bharat Engineering Company Ltd (MBE) has registered 233.33 per cent growth in net profit at Rs 17.50 crore during 2006-07 from Rs 5.25 crore a year ago.

During the quarter ended March 2007, the company's net profit grew by 217.65 per cent to touch Rs 6.48 crore (Rs 2.04 crore)

The total income of the company during 2006-07 stood at Rs 519.60 crore, up 55 per cent from Rs 335.21 crore in 2005-06. During the quarter ended March 2007, MBE's total income was Rs 181.71 crore (Rs 136.19 crore). The board of directors has recommended a dividend of Re 1 per share.

The current order book of the company is estimated at Rs 1,125 crore, including Rs 30 crore from the product business and Rs 1,095 crore from the project business. The company currently has about Rs 7,490-crore order in the pipeline and expects to finalise a substantial portion of the same by the end of this fiscal.

During March 2006-07, the company raised $10 million through FCCB (Foreign Currency Convertible Bonds) issue, and bonds worth $1 million have been converted into equity.

Increasing stake

The promoters of McNally Bharat Engineering Company Ltd (MBE) plan to increase their stake in the company, according to Mr Deepak Khaitan, Chairman, MBE.

"We will like to increase our stake in the company at the right opportunity," Mr Khaitan said, without disclosing details. However, he added that the promoters are looking at various options including market purchase and preferential allotment.

MBE is a joint venture between the GP-CK Birla Group and the BM Khaitan Group. The two groups together own 34 per cent stake in MBE. Public holding in the company is currently 26 per cent while the remaining 40 per cent is owned by FIIs, Mutual Funds and NRIs.