IAFL Q1 net profit up 5.44% at Rs 3.62 cr

New Delhi, July 31 (UNI) Indo Asian Fusegear Limited (IAFL), manufacturer of electrical equipments and switchgears, today posted a net profit of Rs 3.62 crore for the first quarter ended June 30, 2006, up 5.44 per cent over the corresponding quarter last year.

The company's net sales stood at Rs 42.51 crore for Q1, up 45 per cent over the corresponding quarter last year.

The Earnings Per Share (face value Rs 10) for Q1FY07 is Rs 2.47.

''The management expects the current fiscal to be robust on account of capacity enhancement at various manufacturing units including the commissioning of Haridwar plants. The switchgear business has been extremely encouraging. We are confident of achieving significantly higher margins in this business in the current year,'' IAFL CMD V P Mahendru said.

IAFL's revenue from the switchgear business in Q1FY07 stood at Rs 37.33 crore as against Rs 25.49 crore for the corresponding quarter last year.

The exports of the division were up at Rs 3.99 crore as against Rs 2.47 crore in the corresponding quarter of the previous year, an increase of 61.53 per cent, he said.

The lighting business recorded revenues of Rs 7.52 crore in Q1FY07 as against Rs 5.91 crore in the corresponding previous quarter.

Mr Mahendru attributed the high sales to continuous R&D by IAFL and developing new version of products which are energy efficient and user friendly.

''We have been able to maintain profitability as a result of the effective cost control despite general rise in the cost of raw material,'' he said.

In this quarter, the company set up facilities for the manufacturing of distribution boards and feeder pillars at Murthal.

Besides, IAFL also opened overseas offices in Germany, Dubai, Sri Lanka and Nepal.

The company's outlook for the current fiscal will focus on setting up new plants in Haridwar, Uttaranchal, including three large units for the manufacturing of world class switchgears, energy efficient lighting products and wires and cables, expansion of existing facilities for export production, and expansion in overseas countries in West Asia.

The company will also set-up a new electrical lighting equipment facility in Riyadh, Saudi Arabia in joint venture with a leading Saudi company.

Indo Asian is a large global supplier of world-class Circuit Breakers and Lighting Equipment. The Group's flagship company, IAFL is a leading manufacturer of LT Electrical Switchgear Equipment producing a wide range of Electrical Circuit Protection Equipment including Distribution Boards, Switch Boards; switch Panels, Fuse Switches, MCCBs, HRC Fuses, MCBs and RCDs etc.

UNI RA VJ PC1753