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Samtel net up 11 pc

NEW DELHI: Samtel Color Ltd, the largest Indian manufacturer of colour TV picture tubes, has reported a decline in gross sales which fell to Rs 666.54 crore in 2000-01 compared to Rs 669.9 crore registered in the previous year.

However, net profit increased by 11 per cent to Rs 41.56 crore against Rs 37.31 crore recorded in the previous fiscal. The earnings per share stood at Rs 10.26.

The company claimed that in the third quarter of the last financial year, colour television and tube production had gone up in anticipation of higher demand during the festival season. However, a sluggish offtake by the end-consumer, during the festival season led to an inventory pile-up.

``As TV makers started correcting the inventory build-up, CPT sales in the fourth quarter collapsed. This correction of inventory is likely to be completed in the current quarter,'' the company said in a statement.

``With the slowdown in the consumer demand persisting, it is expected that the market for CTVs and colour picture tubes will show only nominal growth even in this financial year,'' the company said.

It is expecting price cuts by the consumer electronics companies leading to severe pressure on tube prices. However, the pressure on tube manufacturers is likely to be set off to a large extent by a decline in the price of glass parts and other raw mater ials and components.

Samtel Color is looking at increasing its presence in the exports market. It is in the process of setting up a third production line with an annual capacity of 2.2 million tubes. The project cost is estimated at Rs 320 crore and would be done through int ernal accruals and debt. It has already tied up loans from International Finance Corporation (IFC) and ICICI. -- Our Bureau