Jessop doubles net profit, declares dividend after three decades

Kolkata, Jun 12 (UNI) Jessop&Co Ltd (JCL), the engineering company controlled by Kolkata-based Ruia group since its divestment in August 2003, has registered a net profit of Rs 9.98 crore for 2005-06 against Rs 4,82 crore in previous year.

The turnover of the company now stood at Rs 78.76 crore compared to last year's Rs 77.95 crore.

The Board of Directors of the company at its meeting today recommended a dividend of eight per cent, subject to approval of the shareholders.

Commenting on the development, JCL Chairman P K Ruia said it was quintessentially a reflection of better cost control and effective outsourcing. " We remain committed to generate more value for every stakeholder of JCL, be it employees, government or shareholders, " he said.

" With an order book position of Rs 130 crore, the future looked brighter indeed for JCL. It will be a much stronger and more profitable company, " he said.

JCL, a 218-year-old engineering giant was brought under the fold of Public Sector after independence, but suffered heavy losses in the first half nineties and came under the purview of Board for Induasrtrial and financial Reconstruction (BIFR) in 1995.

On 29 August 2003, JCL was taken over by a consortium of companies controilled by Mr Ruia. In 2004-05 the company was back in black showing net profit after a lapse of 15 years.

On April, 28 last the BIFR passed an order discharging JCL from its purview following a capital restructuring of the company, which turned its networth positive.

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