Steel Exchange
An MNC, the company makes generators, engines, farm equipment and operates in two spaces- agri equipments and power generation space such as water pumps. In Q2FY12, the company had an exceptional gain of Rs.20.49 crore due to sale of its Rudrapur plant at Uttarakhand and in that context, the YoY, performance, vis-à-vis Q2FY13 looked pale. In Q3, there is no major base effect as such, but yet, net profit is down 50% at Rs.6 crore. This is thanks to the 9% drop in net sales and its other operating income declined 40%. Operating expenses are also up, at 94% of net sales in current Q3 compared to 89% in Q3FY12.
Despite the performance, the stock enjoys fancy on the bourses. This is a debt free company and its cash balance is at Rs.62 crore. The company has always been a generous dividend payer and in FY12, it paid dividend at 90% and 75% in FY11. Its market cap currently stands at Rs.468 crore. As at 31st Dec 2012, Honda Motor held 66.67% stake and Usha International holds 1%, taking total promoters holding at 67.67%.