Elecon Engineering Q4 net up 81 pc, dividend at Rs 5 per share

Mumbai, June 28 (UNI) Elecon Engineering Company Ltd has posted a net profit of Rs 10.96 crore for the quarter ended March 31, 2006 as against Rs 6.04 crore in the corresponding period of the previous fiscal, an increase of 81 per cent.

Announcing the results, a Company release today said its gross income for the quarter under review was Rs 187.38 crore as compared to Rs 102.79 crore in the same period in 2004-05.

It has posted a turnover of net of 27.88 crore for the year ended March 31, 2006 as compared to Rs 10.94 crore in the previous year, while turnover during the year stood at Rs 442.48 crore as against Rs 277.72 crore.

The Company's Board of Directors at its meeting held during the day recommended dividend of 50 per cent, equivalent to Rs. 5 per equity share of Rs 10 each.

Further, the Board also approved subdivision of its equity share of Rs 10/- each into equity share of Rs 2 each subject to approval of members in the next Annual General Meeting as well as holders of Foreign Currency Convertible Bond.

Elecon Engineering claims to have an unexecuted order book of about Rs 626 crore as on end of May 2006. It has on hand major orders from BHEL, Reliance Energy and Torrent Power aggregating to Rs 143.98 crore apart from other orders received.

The Company has signed the documents for issue of Foreign Currency Convertible Bonds (FCCB) of US$ 18 million comprising of two tranches of US$ 9 million each. Out of which, the Company has issued 9,000 0.5 per cent FCCB of US$ 1,000 each aggregating to US$ 9 million at 1 per cent premium on December 20, 2005. These bonds are convertible into equity shares of Rs 10/- each fully paid, at the conversion price of Rs 750/- per share, subject to the terms of issue, with a fixed rate of exchange of Rs 45.28 equal to US$ 1.00.

Pursuant to the notices of conversion received till now, bonds equivalent to US$ 8 million have been converted into 4,82,984 nos.

of equity share of Rs 10/- each fully paid. This has resulted into share premium of Rs 35.74 crore. The current market capitalisation of the Company is around Rs 617 crore.

UNI SN ADG SKB2023