Hyderabad, Jan. 29
HINDUSTAN Dorr-Oliver Ltd (HDO) has announced a growth of 235 per cent in sales at Rs 40.87 crore and a net profit of Rs 2.9 crore during the quarter ended December 2005 as compared to a net loss of Rs 90 lakh in the corresponding quarter of previous fiscal.
In a press release here, the company has attributed the improved performance to doubled capacity utilisation of manufacturing unit at Vatva Industrial Area at Ahmedabad, cost rationalisation done across at all levels, aggressive and focused marketing strategies resulting in a substantial increase in orders.
According to the company, orders on hand have increased to Rs 123 crore by December 2005-end compared to orders on hand of Rs 80 crore as at the end of December 2004.
Commenting on the performance, the HDO Vice-Chairman and Managing Director, Mr E. Sudhir Reddy, said, "The turnaround has happened due to sustained efforts of the management for enhancing the capacity utilisation at Vatva Industrial Area, Ahmedabad, rationalising the cost structure and due to enhancing the productivity at all levels."
According to Mr R. Balarami Reddy, Director, "The company has tied up for the financial requirements with Indian Overseas Bank with better financial terms and this will enable HDO to increase their volumes of business. The reduced financial cost will improve the bottom line of the company further."