The Hindu Business Line : Kesoram Ind to pay 55%

Kolkata, May 5 Having recorded highest-ever profit in 2007-08, the board of directors of B.K. Birla Group company Kesoram Industries Ltd has recommended a dividend of 55 per cent (Rs 5.50 on shares of the face value of Rs 10 each) on the company’s operations in the year ended March 31, 2008.

Sales for the year 2007-08 went up to Rs 3,440.32 crore, a rise of 37 per cent over sales of Rs 2,516.46 crore recorded in 2006-07. The profit before interest and depreciation rose to Rs 695.86 crore (Rs 433.59 crore). The net profit was 44 per cent higher at Rs 383.35 crore.

The improved financial results of the company has been attributed to contributions from the company’s cement units located at Karnataka and Andhra Pradesh and its tyre unit situated in Orissa.

According to the company, the Rs 550-crore expansion plan of its cement unit at Karnataka was progressing as scheduled and production from the expanded facility may commence by December.

The company recently announced suspension of work at its Spun Pipes & Foundries division that is located in Hooghly district of West Bengal. The suspension of work was attributed to “day-to-day low production, quality problems and high-rejection leading to serious financial crises and very high losses….beyond the control of the management”.

When contacted, Mr S.K. Parikh, Director of Kesoram Industries, said the company management was not in a position to state when the suspension notice would be withdrawn.

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Kesoram Ind to pay 55%

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