The Hindu Business Line : Suprajit Engg 2007-08 net down at Rs 4.88 cr

Bangalore, July 2 Suprajit Engineering expects to offset the dismal performance during the fiscal 2007-08 through higher realisation from increased prices of its products to its customers in the automobile sector.

Suprajit, which had successfully negotiated an upward revision by 10 to 25 per cent, reported a steep fall in its standalone net profit at 4.88 crore (Rs 12.37) for the year 2007-08 on a revenue that only marginally rose to Rs 138.52 crore(Rs 132.53 crore).

The consolidated net profit also saw a dip from Rs 11.58 crore from last year to Rs 7.98 crore during the year. The consolidated revenue was 5.54 crore less during FY 2008 against Rs 185.63 crore last year.

The company also paid a lower dividend this year at 20 per cent or Rs 1 for a share of Rs 5. Together with the interim payment, the dividend aggregated to 40 per cent or Rs 2 against total dividend of 50 per cent last year.

With the shifting of the CTP Gills Cables, Surpajit which had acquired the UK company last year, had a temporary set back in realisation because of lower volume and price of the products for exports. Surparjit hopes to increase its margins from larger volume from the current financial year taking advantage of the lower cost of production compared with its erstwhile UK unit, said Mr Ajith Kumar Rai, Managing Director. Mr Rai said the full benefit of the increase in the product’s prices would be reflected only in the second quarter of the current financial year, while the first quarter was expected to reflect some recovery from last fiscal.