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Transafe Services' net profit up

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BS Reporter Kolkata
Last Updated : Jan 20 2013 | 9:08 PM IST

In the same period the net turnover of the company grew by 167.83 per cent to Rs 38.30 crore against Rs 14.30 crore, registered a year ago.

G K Mukherjea, managing director and CEO of TSL, attributed the performance primarily to the creative container business which registered a growth of more than 100 percent during the year.

During 2007-08 the net profit of the company grew by 76.63 per cent to Rs 8.69 crore against Rs 4.92 crore, reported in the previous year.

Whereas the company registered a turn over of Rs 85.11 crore, up 70 per cent over Rs 50.19 crore reported in the corresponding period last year.

"We are looking at a turnover of Rs 250 crore and a net profit of Rs 30 crore in the next two years," Mukherjea said.

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The company sees a ten fold increase in the container demand in the current fiscal.

"Last year we had supplied 900 containers, with total industry demand being around  1,000 containers and this year the requirement is going to be in the region of 8,000-10,000 containers out of which we would be able to supply around 6,000 containers," he adds.

The main reason behind this jump in the demand is due to the ten fold increase in railway rakes to 129 from the current figures of 15-20 rakes. 

"Taking each rake demands around 100 containers, on a conservative estimate the demand for containers should cross 1000 containers comfortably," Mukherjea added.

Accordingly, TSL has lined up Rs 133 crore investment for the current fiscal.

This includes capacity augmentation in the existing plants and setting up a couple of new plants.

The company is planning to raise Rs 10 crore through a right issue, to support the expansion plans.

"The board has approved in principle, a right issue in the ratio of 3:10 at a price of Rs 16 which would enable us to raise equity capital of Rs 10 crore. This apart, our accrued profits would be leveraged for the proposed expansion plans," said  Mukherjea.

The Kolkata based company has set aside Rs 25 crore for setting up two new plants at Haryana and Coimbatore.

Currently the company has three plants at Kolkata, Kharagpur and at Coimbatore, with a total capacity of 650 containers a month, which is set to double post expansion.

TSL is a joint venture between ICICI Ventures and Kolkata based Balmer Lawrie with the former holding 71 per cent of the stake.

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First Published: May 13 2008 | 7:30 PM IST

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