The Hindu Business Line : STC pays Rs 8.2-cr dividend to Govt

BUOYED by the confidence of surpassing the full year turnover and profit targets set out in the memorandum of understanding (MoU) for the current fiscal, State Trading Corporation (STC) today announced 15 per cent interim dividend to the Government.

Accordingly, the STC Chairman & Managing Director, Dr Arvind Pandalai, presented to the Union Commerce & Industry Minister, Mr Kamal Nath, two dividend cheques of about Rs 4.10 crore each. While the first cheque was on account of final dividend payment of 15 per cent for the year 2004-05 to the Government, over and above the 15 per cent interim dividend already paid, thus taking the total dividend payment to 30 per cent for the last fiscal.

In 2004-05, STC had earned a net profit before tax of Rs 37 crore, which was 43 per cent higher over 2003-04, a company release said.

The second cheque was on account of payment of interim dividend of 15 per cent by the Corporation for the current fiscal.

Dr Pandalai said during the first six months of the current fiscal, STC has reported a profit before tax of Rs 27 crore, which represents a growth of 11 per cent over the corresponding period of the previous year.

In the current fiscal, STC has undertaken some crucial initiatives that would go a long way in sustaining higher turnover and profitability in the medium-term. The corporation has entered into overseas steel operations in the Philippines under which it is arranging supply of coke/steel raw material to a steel plant that has been taken over by an Indian company in the Philippines.

The goods supplied are being procured from India as also from other countries. The corporation plans to undertake analogous operations gradually in other countries too.

An arrangement has also been reached with Mysore Minerals, a Government of Karnataka undertaking, according to which the corporation has been getting assured supplies of iron ore fines and the same is being exported to China and other countries.

STC has also been granted mining lease over a large piece of land in Karnataka for a span of 30 years.

Other diversification plans on the anvil include export of petro products, imports of communication equipments and non-ferrous metals and venturing into lightweight bulletproof vests for military and paramilitary forces and ballistic protection for vehicles, the company release said.