BSL reports 64.6% jump in net profit, recommends 10% dividend

New Delhi, May 17 (UNI) BSL Ltd, an LNJ Bhilwara Group company, today reported a 64.6 per cent hike in its net profit at Rs 1.86 crore for the year ended March 31, 2006, as against Rs 1.13 crore for the same period last year, while recommending a 10 per cent dividend.

The company registered a growth of 14.42 per cent in its annual turnover to Rs 173.35 crore from Rs 151.49 crore last year.

The net profit for the quarter was up 99 per cent at Rs 1.99 crore, as against Rs 1 crore in the corresponding quarter last year, while the turnover for the period was up 11.13 per cent at Rs 40.02 crore as against Rs 36.01 crore in the corresponding quarter last year.

BSL CMD A K Churiwal while commenting on the results said, ''The board has decided to make investments towards capacity expansion, including the setting up of a 6MW Captive Thermal Power plant at an estimated cost of Rs 25 crore and expansion of capacities of Synthetic and Worsted spinning by 8000 spindles which is estimated to cost the company another Rs 25 crore.'' The company has also decided to diversify into manufacturing of silk fabrics for which the weaving capacity is being enhanced, and is installing eight Jacquard/Dobby weaving machines at an estimated cost of Rs 15 crore.

The total proposed capital expenditure of Rs 65 crore will be financed through term loans and internal accruals.

UNI RA YA RN1954