Business Daily from THE HINDU group of publications
Saturday, Jan 19, 2008
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Saturday, Jan 19, 2008 ePaper | Mobile/PDA Version |
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Markets
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Stocks Corporate - Overseas Investments
Our Bureau Kolkata, Jan. 18 Growing EPS and possibility of an overseas acquisition has smoothened the ride for Eastern Silk in the market. Defying the market, the stock today finished 2 per cent up at Rs 249.45. In the last one week, the stock has gained 4.5 per cent and the monthly gain for the counter stands at over 8 per cent. Business Line already reported that the company is at an advance stage of negotiations with a European silk unit for takeover. Official sources indicated that the deal might not come through before next month. The company is simultaneously moving ahead for an overseas fund raising exercise. Incidentally, the shareholders of Eastern Silk had earlier given their approval to raise funds abroad through issue of equity or debt instruments worth $60 million. EPS growthEastern Silk has reported a diluted earning per share on December 31, 2007, of Rs 16.16 against Rs 11.65 on December 31, 2006, representing growth in earnings of 29.17 per cent. Sequentially this fiscal, the company’s EPS has grown from Rs 11.87 in the first quarter to Rs 13.24 in the second quarter to Rs 16.16 in the third. The first nine months of this financial year has seen Eastern Silk’s EPS improve to Rs 41.62 from Rs 30.99 in the corresponding period of the previous fiscal. The full year EPS of 2006-07 was Rs 36.52. Eastern Silk, an exporter of textile goods, has reported 38.67 per cent growth in net profit to Rs 25.51 crore in the quarter ended December 31, 2007 from Rs 18.40 crore in the corresponding quarter of 2006-07. Net sales figure was Rs 168.96 crore compared with Rs 125.14 crore posted during the the corresponding quarter of the previous fiscal, recording a growth of 35 per cent. For the full year ended March 31, 2007, the company had reported a PAT of Rs 57.67 crore on net sales of Rs 451.20 crore. Rupee appreciationAccording to the Chairman and Managing Director of Eastern Silk, Mr S. S Shah: “Considering the difficult environment in which exporters have been operating in the face of the rising rupee vis-À-vis the dollar, the Q3 results showed that the company made inroads in the fashion-conscious markets of the US and Europe. Except for unforeseen circumstances, this momentum should continue in the next quarter as well.” The company is a leading exporter of textiles, silk furnishings/fashion fabrics and made-ups. It manufactured items include silk garments, made-ups, scarves, ties, stoles and belts etc. Its buyers are spread over the US, Canada, Europe, West Asia, Japan, Australia and New Zealand. More Stories on : Stocks | Overseas Investments | Silk
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