Visakha's net profits Rs 19.25 crore; to merge with Shakthi Roofings

Hyderabad, Apr 25 (UNI) After posting net profit of Rs 19.25 crore from Rs 311.2 crore business in 2005-2006, Visaka Industries Industries (VIL), the Hyderabad-based listed company today announced it would be India's second largest asbestos cement manufacturer with the location of a new Rs 32-crore asbestos plant at Vijayawada and merger with another company.

Visaka's total income for the year ended March 31, 2006 was Rs.311.20 crore, up by 38.72 per cent, as against Rs 224.34 crore in the previous year. The Net profit was Rs 19.25 crore, up by 34.15 per cent compared to Rs 14.35 crore in the previous year. Earning per share during the year was Rs 17.72 as against Rs 13.12 during the previous year. The Board of Directors of Visakha Industries Limited in their meeting held today recommended payment of Rs.3 per share (30%) as dividend.

Company Managing Director Dr G Vivekanand told the media that the Board of Directors had approved the merger of M/s Shakthi Roofings Private Limited with the company effective from April 1, 2006.

With the merger of M/s Shakti Roofings, Rae Barelli Unit, commissioned in January this year, working to full capacity of one lakh Tonnes Per Annum (TPA) throughout 2006-2007 and the three lakh TPA Vijayawada Unit, expected to commence production by October 1, 2006, VIL was likely to become the second largest asbestos cement sheet manufacturer in India with capacity of half million TPA.

The Board had also approved private placement of 3,00,000 Equity Shares which would be around Rs 4.5 crore and Nine Lakh Convertible Warrants of the company to Private Investors, as per SEBI guidelines. The funds being raised by this issue will be utilised for part financing of the Vijayawada project.

The total income of the Asbestos Cement division was Rs 212.88 crore compared to Rs 139.11 crore in the previous year, recording an increase of 53 per cent. The profit before tax for the Division during the year was Rs 26.26 crore as compared to Rs 15.52 crore during the previous year, recording an increase of 69.20 per cent.

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