The share price of Mirc Electronics surged to an intra-day high of Rs 385.25 on the Bombay Stock Exchange (BSE) today after the company announced a rise in its net profit for the first quarter ended June 30, 2002.
The share ended 1.84 per cent up at Rs 378.45 amid a combined volume of 24,208 shares on the BSE and the National Stock Exchange (NSE).
The owner of the popular Onida colour TV brand has been able to withstand the recent market recession that was precipitated by drought fears and a meltdown in the equities globally.
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Expectations of a strong financial performance held the scrip in a good stead.
The scrip moved in a relatively narrow band of Rs 350-400 in the last few trading sessions on the BSE.
However, given that the company plans to aggressively focus on rural and semi-urban sectors in the coming months, the poor monsoon could jeopardise the company's plans.
For the first quarter ended June 30, 2002, Mirc Electronics posted a 203 per cent surge in net profit at Rs 7.50 crore on the back of a 40 per cent rise in total income to Rs 176 crore.
As expected, Mirc's first quarter results were boosted by sales generated by the World Cup Football telecast.
The company also simultaneously unveiled its audited results for the fourth quarter ended March 31, 2002, and fiscal 2001-02 results, which proved strong.
For the fourth quarter, the company's net profit surged 194 per cent to Rs 9.78 crore, while total income improved 21 per cent to Rs 209.29 crore.
Mirc has been one of the most enterprising television companies in India and has been able to ward off the threat from multinationals foraying into the Indian television market.
The company has consciously chosen to sell its entry-level sets under a separate name to preserve the image of its premium brand 'Onida'. Mirc derives close to 80 per cent of its revenues from CTV sales and the balance from black and white sets.
Mirc is in the process of expanding its production capacities from 6 lakh currently to 10 lakh units per annum. This is to be funded through internal accruals.
Around Rs 80 crore have already been invested and the balance Rs 40 crore will be invested during the current year.