The Hindu Business Line : FCI OEN Connectors net up 12%

Kochi March 9 The net profit of FCI OEN Connectors has risen by 12 per cent to Rs 19.6 crore for the year 2006. Profit before tax was up by 16 per cent to Rs 40.70 crore, while the total sales turnover grew by 30 per cent to Rs 183 crore (Rs 141 crore).

Growth in turnover came from connectors for communications and data sectors and higher export volumes, a press release from the company said.

Export sales increased by 28 per cent to Rs 105.7 crore and today constitute 58 per cent of the total sales of the company. Connectors made by FCI OEN now have a ready market in 32 countries across the world. Exports have for the first time crossed Rs 100 crore, up from Rs 82.8 crore in 2005.

Data market recorded reasonable growth in 2006, while industrial, automotive and electrical segments also evidenced some amount of growth. The market for these segments have helped increase the company's turnover.

The company's margin was under pressure due to a steep increase in metal prices, which constitute around 50 per cent of the raw material costs. During the year, FCI OEN registered an average margin of 12 per cent. FCI OEN has fared reasonably well by adopting cost-cutting measures, bringing new product lines, increasing value added business, entering into new markets and bringing in new customers. Earnings per share moved up by 14 per cent to Rs 31.17.

The company declared an interim dividend of 50 per cent on the total paid up capital for the year 2007. This works out to Rs 5 for every share of the company, which has a face value of Rs 10, sources in the company said. The company's shares moved up by 2.52 per cent to close at Rs 320 on the BSE.

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FCI OEN Connectors net up 12%