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Strong results foster gains in Foseco
February 17, 2003 15:11 IST
Foseco proved the subject of delight for the second day in a row on Monday and the company's announcement of a 150% dividend had much to do with this.
The share of the multinational chemicals maker hit the 10% ceiling today at Rs 117.35. A generally thinly traded scrip, Foseco India was propped up by solid FY 2002 results and a mega 150% dividend (50% special dividend and 100% normal dividend). On Friday, the scrip surged by 10% to Rs 106.70.
FIL reported a turnaround in performance, in fact . For the full year ended 31 December 2002, it posted net profit of Rs 10.66 crore as against net loss of Rs 3.41 crore. For the fourth quarter ended 31 December 2002, it reported a net profit of Rs 2.09 crore as against a net loss of Rs 0.83 crore. The performance was boosted considerably by the various cost control measures implemented by the company.
For Q4, sales declined 13% to Rs 18.72 crore and for the full year 2002, sales declined 10% to Rs 78.37 crore.
During the year ended 31 December 2002, the company sold its business rights pertaining to AFAX Mould Flux product line to Stollberg India Pvt Ltd and Tundish product line, including assets, to Vesuvis India Ltd for a total consideration of Rs 7.71 crore.
FIL manufactures 400 different products for the metallurgical industry including the steel and foundry industries. The company's products are in the nature of additives and consumables and improve the physical properties and surface qualities of castings as well as reduce the costs of melting, moulding and castings. Its market covers integrated steel plants like Sail and Tisco, mini mills like Mukand, Kalyani and Musco; and foundries like Ennore Foundries, Lakshmi Machine Works, etc. It also exports its products to the Middle East, the Far East, Sri Lanka, Nepal, Kenya, Ghana, Bangladesh, Singapore and Taiwan.
Innovation is one of Foseco's core strengths and development centres have been established in areas of work where 'state-of-the-art' product technology exists. This enables the company to work in close partnership with its customers to develop new products and technologies at the forefront of the industry.
The board of directors of the company have recommended a dividend of Rs 15 (150%) per equity share of Rs 10 for the year ended 31 December 2002. This comprises an ordinary dividend from continuing operations of Rs 10 (100%) per equity share and a special dividend of Rs 5 (50%) per equity share arising from the exceptional income on the sale of steel business.
After two compulsory open offers (as required by Sebi due to change in ultimate parentage), the Foseco group now controls 66% equity stake in the company.
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