Crompton Greaves's net profit has fallen nearly 52 per cent despite a sales growth of 1.8 per cent for 1996-97.
Announcing the results for the financial year 1996-97 after a board meeting in Mumbai yesterday, the company said it has halved the dividend from Rs 5 a share to Rs 2.5. Earnings per share (EPS), too, has fallen from Rs 14.1 to Rs 5.91.
In fact, fall in other income, higher interest and depreciation charges together have ate into the company's profitability. Margins at the operating level, too, have fallen from 10.37 per cent to 9.31 per cent. Other income fell from Rs 15.5 crore to Rs 8.8 crore, while interest burden rose to Rs 77.63 crore from Rs 57.57 crore.
Depreciation touched Rs 32.13 crore from Rs 21.32 crore. Net profit, too, fell 52 per cent to Rs 30.76 crore from Rs 64.04 crore, while exports declined marginally to Rs 154.91 crore from Rs 155.71 crore last year. The company did not pay any tax this year citing write-back of excess provision of earlier years amounting to Rs 3.5 crore. Following last year's GDR issue at Rs 255 per share, the equity has risen to Rs 52.04 crore from Rs 45.39 crore. In 1995-96, riding on growth in core businesses, the company posted sales growth of 37 per cent to Rs 1,480.73 crore. Net profit rose 50 per cent to Rs 64.3 crore from Rs 43.3 crore.
The 1996-97 second-half performance is worse than the first half, which saw net profit at Rs 16.05 crore on net sales of Rs 612.93 crore.
In the second half, the company managed to record net profit of only Rs 14 crore though net sales increased by Rs 895.88 crore.
Interest costs rose by nearly Rs 40 crore against Rs 37 crore in first-half, while depreciation jumped by nearly Rs 23 crore.
