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Home arrow News arrow Business News arrow Ennore Foundries registers a jump in net profit
Ennore Foundries registers a jump in net profit Print E-mail
Written by Arjun   
Friday, 11 May 2007

 Ennore Foundries Q4 net rises by 44% .  Commercial production at the new Greenfield site at Sriperumbudur near Chennai expected to commence during the 2nd quarter of FY 2007-08 as originally planned.

CHENNAI : Ennore Foundries, a member of Hinduja Group, has registered a jump in net profit during the fourth Quarter ended 31st March, ‘07 at Rs 66.58 million compared to Rs 46.32 million posted in the corresponding quarter of the previous fiscal. The increase in profit was mainly due to enhanced delivery of castings with higher realizations made possible through the enlarged production of higher end products. The total revenues of the Company for the 4th quarter were up 30% at Rs 1106.74 million (Rs 848.93 million).

 For the Financial year 2006-07, the Net Profit was up by 16% at Rs 161.65 million (Rs 139.63 million) .The total revenues for the year under review registered a 19% growth to Rs 3981.19 million (Rs 3355.42 million). “This has been a year of continued growth. The demand for castings remains buoyant and we believe this growth momentum can be sustained” Mr V Mahadevan, Managing Director, said after announcing the Company’s results.

  Speaking about the expansion plans, Mr Mahadevan added that the main equipment installation were nearing completion at the Greenfield site at Sriperumbudur near Chennai and commercial production was expected to commence during the 2nd quarter of FY 2007-08 as planned.

 The new facility equipped with state-of-the-art technology would further enhance production capabilities for products, especially at the higher end of the value chain viz., Cylinder Blocks and Heads to meet the future emission norms.

 Addition of this capacity at the greenfield site will enable the Company to service the domestic customers better by meeting their anticipated increased needs of castings. This will also enable the Company to dedicate around 40% of the capacity for exports in view of the huge potential available.

 The Design Center at Sriperumbudur, expected to be in operation by the end of 1st Quarter of FY 2007-08 would enhance product design and development capabilities and will also shorten the developmental cycle time, to make product offerings faster. The technology up gradation and capacity optimization in the existing units are progressing satisfactorily as per plan .The installation of new facilities to produce heavier castings is nearing completion at the Ennore plant and is expected to be in operation during the 2nd quarter of FY 2007-08, widening the product segments. The Company has paid off the dividends for the preference shares towards the arrears and also for the year 2006-07.

Last Updated ( Saturday, 12 May 2007 )
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