The Hindu Business Line : Suprajit to set up new facility in Haridwar

Suprajit Engineering, leading automobiles cables manufacturing company, will be investing Rs 15 crore, which will include setting up a new facility at Haridwar in Uttarakhand to initially cater to its major customer, Hero Honda.

The new plant, set up at a cost of Rs 10 crore, will start commercial production in January.

The company also plans to improve production efficiencies and capacity in its other facilities.

Dividend

Suprajit has declared a dividend of Rs 1.25 for FY 2008-09, in addition to an interim dividend of Rs 1.

Mr Ajith Kumar Rai, Vice-Chairman and Managing Director said the company posted a net profit of Rs 3.58 crore during the quarter ended March, against a net loss of Rs 1.35 crore for the corresponding period in 2008.

The improved finances were due to an increase in net sales by nine per cent despite the automobile sector being one of the worst affected sectors by the economic slowdown.

Net profit

During the full year, Suprajit posted a net profit of Rs 11.62 crore against Rs 4.88 crore for the corresponding period last year.

The company’s income also grew 16 per cent to Rs 181.5 crore during the year from Rs 156.7 crore in the previous year.

Mr Rai said the results, defying the dismal economic situation was due to a combination of factors, which included price revision, lower commodity prices and better cost efficiencies.

The company had raised its price by about 7-8 per cent during the year.

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