Usha Martin to split shares

Kolkata, May 17 (UNI) In a bid to increase liquidity, the Board of Usha Martin Limited has recommended stock split of the company's equity shares increasing the number by five times.

" The Board has decided that equity shares of Rs five each will be split into five of Re one each. This will increase the trading value and cash liquidity for the company, Vice Chairman Rajeev Jhawar today said while announcing Usha Martin's financial results for 2006-07.

At present the company had a total of 50000000 shares. The Board's proposal would be placed at the company's annual general meeting to be held in July for approval.

Mr Jhawar said the company, weighing an option for setting up a plant in China, would open its office there in the next six weeks to study the market, availability of raw materials and locational advantage.

The net profit of the company, a leader in speciality steel and wire rope manufacturing, surged by 56.2 per cent at Rs. 101.48 crore in 2006-07 from Rs. 64.96 crore in the previous year.

The gross sales increased by 15.7 per cent at Rs 2036. 65 crore from Rs 1759.98 crore.

In keeping with the overall performance, the net profit in the quarter four rose by 42.4 per cent at Rs 29.02 crore and the gross sales also recorded a growth of Rs 17.8 per cent at Rs 573.63 crore.

The consolidated gross turnover of Usha Martin and all its subsidiaries showed a rise of 13.3 per cent at Rs. 2960.39 crore during the period from Rs. 2612.61 crore in the previous year and the profit after tax shot up by 62.9 per cent at Rs. 137.45 crore from Rs 84.35 crore.

The company Board recommended a dividend of 75 per cent on the face value of Rs five per share.

In reply to a question, Managing Director P Bhattacharya said the company would complete its expansion programme in the next two-and-a-half years involving a total investment of Rs 1400 crore.

Of the total capital, Rs. 200 crore had been raised through equity, Rs 575 crore through debts and the rest through internal accruals.

The capital expenditure plans for speciality steel capacity expansion to one million tons and wire ropes product capacity enhancement.

Of the total expenditure, Rs 1,000 crore would go on steel, while Rs 200 crore each had been earmarked for development of the coal mines, owned by the company and value addition in the steel plants both in the country and abroad, Mr.Bhattacharya said.

The company had already completed integration of its iron ores with the steel plants at Jamshedpur and Ranchi making hundred per cent utilisation, he said.

The company has manufacturing facilities also at Hoshiarpur and in the UK, Thailand, UAE and the USA with a worldwide distribution, servicing and marketing network.

UNI