The Hindu Business Line : Carborundum net up 21 pc, bonus issue at 1:1

CARBORUNDUM Universal Ltd has reported a net profit of Rs 38 crore for last year, which is 21 per cent more than its achievement of Rs 32 crore in the previous year. Sales increased to Rs 357 crore from Rs 314 crore previously.

The board of directors has recommended a dividend of 100 per cent, that is, Rs 2 for each share of Rs 2 face value. The dividend last year was 125 per cent, but it included a special dividend of 25 per cent for the centenary year.

The board has also approved an issue of bonus shares in the ratio of one share for every one held.

The company undertook modernisation and upgradation of its various manufacturing facilities involving a total investment of Rs 36 crore. At the Tiruvottiyur plant, modern facilities were established for certain product lines. In the Hosur industrial ceramics plant and the Ranipet super refractories plant new kilns were installed. These investments have enabled the company to deliver a new range of products and also strengthened its capability to deliver consistent product quality and lower production cost in certain product lines.

During 2005-06, the company plans to incur capital expenditure of Rs 75 crore. The plan includes setting up of a coated abrasives plant at Sriperumbudur (near Chennai), establishment of facilities for manufacture of certain premium electro mineral products and also expansion/modernisation of the existing facilities for various abrasive, industrial ceramics, super refractories and electro-mineral products.

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