Datta: Looking forward
Calcutta, May 8: Andrew Yule & Company, the diversified public sector undertaking, is looking to come out of the Board for Industrial and Financial Reconstruction (BIFR) in this financial year.
“Our net worth had turned positive and we are making profits. There are some income tax and legal issues for which we are still under the BIFR. We hope that the issues will be resolved soon and the company may come out of the BIFR this fiscal,” Kallol Datta, chairman and managing director of Andrew Yule, said.
The Calcutta-based company, which is into the manufacturing of engineering equipment and tea, was referred to the BIFR in 2003.
The government had approved a restructuring scheme for the company in 2007.
The company’s net worth had turned positive in 2008-09. It had also repaid part of the restructuring loan through the divestment of Phoneix Yule, DPSC and Tide Water Oil Company.
The company had sought an exemption on the capital gains it had accrued from the divestments.
In July last year, the BIFR had approved an increase in the share capital of Andrew Yules to Rs 110 crore from Rs 75 crore. The approval came after the cabinet committee on economic affairs allowed the conversion of the outstanding government loans of the company into equity. Along with this, an interest waiver helped the company to improve its working capital and profitability.
On the company’s performance, Datta said the tea division was generating a major part of the revenue.
“In terms of yields, quality and profitability, the tea division is doing extremely well. Our focus is directed towards that division,” he said, adding that the company is undergoing a major replantation drive. The company has gardens in Darjeeling, Assam and the Dooars.
While Andrew Yule’s results for the fourth quarter of 2013-14 are awaited, Datta said the company had improved its sales in the tea, engineering and electrical businesses.
In 2012-13, the company had earned a revenue of Rs 321.74 crore, driven by its tea business. Tea sales stood at around Rs 150 crore on the back of better prices. Earnings from the electrical division stood at Rs 85.91 crore, while the engineering unit contributed Rs 30.41 crore.
The company has recently entered into a technical tie-up with a Russian transformer manufacturer to produce high voltage transformers. It plans to invest Rs 150 crore to set up a manufacturing plant in south India.