Reflecting the tough industrial environment, Coimbatore-based gear and gear products manufacturer Shanthi Gears Ltd has witnessed a sharp decline in net sales and net profit in Q4 of 2012-13 fiscal compared to the same quarter earlier fiscal.

In fact, but for the other income component, the company would have posted a loss during the last quarter.

According to the audited financial results, the total income from operations dropped to Rs 37.1 crore from Rs 49.32 crore. Profit from operations before other income, finance cost and exceptional items, slipped to Re 0.06 crore (Rs 10.84 crore).

However, earnings from other income at Rs 2.56 crore (Rs 1.48 crore) resulted in a profit-before-tax of Rs 2.57 crore (Rs 12.22 crore) after adjusting finance cost of Rs 5 lakh.

After providing for tax expenses of Rs 0.65 crore, the company earned a net profit of Rs 1.92 crore in Q4 of 2012-13 fiscal compared with Rs 8.14 crore in Q4 of previous fiscal. The EPS was Re 0.23 (Re 0.99) of share face value Re 1.

For the full year, the total income from operations was Rs 146.53 crore against Rs 172.99 crore in 2011-12. Net profit during last year was Rs 15.47 crore (Rs 28.13 crore).

For Shanthi Gears Ltd, this is the first year under the new management, though only for three quarters, after it was taken over by the Chennai-based Tube Investments of India.

TII entered into a share purchase agreement with the promoter/promoter group of Shanthi Gears on July 13, 2012 to acquire 44.12 per cent of their stake in the equity.

Subsequently on November 19, 2012, it acquired a further 26 per cent stake through an open offer taking its total holding to 70.12 per cent of the share capital of SGL which is Rs 8.17 crore. After that, SGL became a subsidiary of TII.

The board has recommended a dividend of 60 paise per share. The stock closed at Rs 55.50, a gain of 50 paise, on the BSE today.

Related Topics
comment COMMENT NOW