Riding on the back of the boom being witnessed by the automobile industry, auto component manufacturer L.G. Balakrishnan & Bros Ltd (LGB) has witnessed a sharp jump in net sales in Q4 of 2010-11 compared to the corresponding period in the previous fiscal.

Negative tax expense helped the company post a robust increase in net profit in the final quarter of last year compared to same period in the previous FY.

LGB also came out with a dividend payout of Rs 10 per share (100 per cent).

According to the audited standalone results, in the quarter ending March 31, 2011, LGB's net sales were Rs 187.41 crore (Rs 155.30 crore). While the profit before tax was lower at Rs 9.96 crore (Rs 10.41 crore), a negative provisioning for tax expense of Rs 5.34 crore (Rs 4.05 crore) saw the net profit more than double to Rs 15.31 crore (Rs 6.35 crore).

For the full year, LGB recorded sales of Rs 709.52 crore (Rs 552.37 crore), a jump of nearly 30 per cent. The net profit nearly doubled to Rs 45.80 crore (Rs 24.83 crore), helped by the sharp fall in tax expense which dived to Rs 1.49 crore in 2010-11 from Rs 11.91 crore in 2009-10.

While the EPS for the fourth quarter last year had more than doubled to Rs 19.51 (share face value Rs 10) from Rs 8.10 in the same period in 2009-10, the full year's EPS was Rs 58.36, a near 86 per cent jump from Rs 31.64 in 2009-10.

On the BSE, LGB closed at Rs 315.35 on Friday with about 11,760 shares being traded.

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