The Hindu : Business : Bajaj Hindustan to pay 40 p.c.

Online edition of India's National Newspaper
Saturday, Dec 25, 2004

Business

Business

Bajaj Hindustan to pay 40 p.c.

By Our Staff Correspondent

MUMBAI, DEC. 24. Bajaj Hindustan Ltd. (BHL) today announced a sharp increase in net profit for the year ended September 2004 at Rs. 61.02 crores against Rs. 28.35 crores in the previous year. The company has also announced a dividend of 40 per cent.

The company's turnover for the year was at Rs. 542.95 crores (Rs. 471.24 crores). After providing Rs. 13.60 crores (Rs. 6.74 crores) for interest, the gross profit was Rs. 96.97 crores (Rs. 49.81 crores). The company provided Rs. 19.09 crores (Rs. 13.51 crores) for depreciation and Rs. 2.90 crores (Rs. 2.55 crores) for tax.

During the year, a new 7,000 tonnes crushing per day (tcd) sugar refinery was set up at Kinauni, Meerut, in November. This is the company's third plant and was completed in a record time at an investment of Rs. 155 crores.

The company has gone in for simultaneous construction of three new green-field plants in western Uttar Pradesh, each with a capacity of 7,000 tcd. The company has planned an investment of Rs. 405 crores towards these projects. Financial closure has been achieved and the plants are expected to commence operations by October 2005. The plants will enhance the company's total capacity by 5 lakh tpa, doubling it to around one million tpa and consolidating its position in the global sugar industry.

The company also completed and commissioned a second distillery at Palia Kalan in U.P. This is in addition to the company's earlier distillery at Golagokarannnath. With this, BHL is the largest ethanol maker in India with a capacity of 145 kilolitres a day. Kushagra Nayan Bajaj, Chief Executive, BHL, said, "Our growth strategy to remain a volume-based player is showing results."

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