RESULTS: Govind Rubber’s Q2 PAT up by 606%, sales up by 38.47%

cityairnews cityairnews Nov 7, 2012 12:00 0

RESULTS: Govind Rubber’s Q2 PAT up by 606%, sales up by 38.47%

Ludhiana, November 7, 2012: Govind Rubber Ltd. (GRL) has shown very encouraging results for the quarter ended 30th September 2012. The company has shown record sales of Rs.107.75 crore, which was Rs. 78.23 crore as compared to corresponding period last year. The profit after tax shot up by 606% to Rs. 7.13 crore, which was Rs. 1.01 crore. Earning per share (basic & diluted) went up to Rs. 3.27, which was Rs. 0.46.

For the half year ended on 30th September 2012, the net sales went up to Rs. 185.98 crore, which was Rs. 142.47 crore for the same period last year. Profit before tax had improved from Rs. 1.55 crore to Rs. 10.06 crore, posting a  substantial  growth of 549% over last year.

Vinod Poddar, Chairman & Managing Director of Govind Rubber Ltd. stated that the company had shown robust improvement in performance due to better product mix and benefit of softening raw material prices. The company expected better profitability in the quarters to come.

GRL has 4 manufacturing plants. At Ludhiana plant, the company was expanding its range of 2 & 3 wheelers tires & tubes by launching new patterns and designs to beat world competition. The plant would  manufacture high end bicycle tyres . At Alwar- Rajasthan, in the recently acquired plant, the company proposes to invest Rs. 120 crore for the first phase of modernization and expansion to reach a capacity of 100 tons per day. GRL will set up a green field project at Dahej –Gujarat with a capital outlay of Rs. 750 crore. For this purpose, the company has acquired 64 acre land and construction will commence from March 2013. This tire plant is expected to have trial run by September 2014.

The company’s joint venture in Korea has shown profitability in the first six months of its operation. The company has been successful in selling its products in various nearby countries, viz. Vietnam, China, Japan & Indonesia. GRL has set up a wholly owned subsidiary “GRL B.V.” at Holland at Netherlands. It has also set up an office and warehousing, making the company a “Tire Hub” in Holland. GRL will market its full range of tires and tubes in Europe through this network.