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R.Y. Narayanan

Coimbatore , Jan. 29

RIDING on the boom witnessed by the automobile industry, the city-based automotive components major Premier Instruments & Controls Ltd (Pricol) has reported a substantial increase in turnover and net profit in the third quarter of the current fiscal compared to the corresponding period last year.

The company has also announced sub-division of the face value of the equity shares from Rs 10 per share to Re 1 per share and a 1:2 bonus share issue (one share for every two held) post-stock split.

The authorised share capital of the company is also being increased to Rs 10 crore from the existing Rs 7 crore and an annual general meeting (AGM) of the shareholders is being convened on June 25 to secure their approval for these decisions. The record date for stock split and bonus issue would be decided after getting the shareholders' approval.

According to the audited financial results for Q3 of 2003-04 FY, the income from sales and services surged to Rs 104.92 crore compared to Rs 77.09 crore in the same period last year.

The profit before tax and exchange rate fluctuation doubled to Rs 16.47 crore (Rs 8.05 crore). After providing for current taxation, the net profit more than doubled to Rs 10.5 crore ( Rs 4.47 crore).

The EPS for the Q3 increased to Rs 17.53 (Rs 7.47) and for the first nine months of current fiscal, the EPS stood at Rs 39.32 (Rs 21.12).

The company's board has decided to split the face value of the equity shares from Rs 10 per share to Re 1 per share and increase the authorised share capital from Rs 7 crore (Rs 70 million) to Rs 10 crore (Rs 100 million).

It has also decided to issue bonus shares in the ratio of 1: 2 and these decisions would be placed before the shareholders at the AGM to be held on June 25, for approval.

Asked for the considerable time lag between the board's decisions taken yesterday and the date of the AGM to seek shareholders' approval, a company source explained that instead of holding a separate AGM to approve these decisions and another AGM later in the year to consider the annual results for the year 2003-04, the company decided to advance the date of the AGM itself to consider the annual results and also approve the board's decisions taken at it meetings on January 28.

When asked whether the record date for stock split and bonus issue would not be delayed further after the holding of the AGM, he said the record date could be fixed at a shorter interval once shareholders give their nod for the proposals.

On the reasons for seeking to increase the company's authorised share capital from Rs 7 crore to Rs 10 crore, the source pointed out that currently, the paid-up equity share capital of Pricol was Rs 6 crore and once the bonus shares were issued, the equity would go up to Rs 9 crore, which would be higher that the present authorised share capital. Hence the proposal to increase the authorised share capital to Rs 10 crore.

More Stories on : Bonus Announcements | Automobile Components

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