Small rise in MICO net profit

BANGALORE, May 29: The margins of Motor Industries Company Limited (MICO) are under pressure. Even though the company’s sales turnover increased by 25 per cent from Rs 931.5 crore in 1995 to Rs 1,163.6 crore in 1996, the percentage of profit on turnover declined sharply to 9.2 per cent from 11.8 per cent in the previous year.Profit before tax fell to Rs 107.55 crore from Rs 110.26 crore in 1995, while the profit after tax during ’96 stood at Rs 60.9 crore (Rs 52.6 crore). MICO’ wrote back excise duty provision amounting to a whopping Rs 16.25 crore and a small accretion to profit out of sale of investments (Rs 44.81 lakh).

During the year operating expenses galloped to Rs 565.32 crore (Rs 477.79). Similarly interest also mounted to Rs 14.28 crore against Rs 9.2 crore.

The board of directors has recommended a dividend of Rs 24 per share for the year ending December 31, 1996 compared to Rs 22 last year.