Finolex declares bonus

PUNE, Apr 30: Finolex Cables Ltd, the flagship company of the Pune-based Chhabria group, has declared a bonus issue in the ratio of one equity share for every one share held. For the financial year ended March 31, 1999 net profit is up by 24 per cent to Rs 60.13 crore against last year8217;s Rs 48.62. Earnings per share has moved up from Rs 26.90 per share to Rs 33.31.

The company8217;s pre-bonus equity stands at Rs 18.05 crore and free reserves based on the unaudited financial results is Rs 563.03 crore, states a company press release. The company had declared a 1:1 bonus in 1994.

The board is expected to meet in mid-July to consider the audited accounts and declare dividend. Last year the company had paid a dividend of Rs 6 per share.

The company expects to do well in 1999-2000 with sizeable order book for jelly filled telephone cables. The company is investing Rs 75 crore for setting up a new manufacturing unit at Goa. Funded from internal accruals, the project will be getting substantial tax benefits. Theproject is expected to be operational early next year and will produce jelly filled telephone cables and other light duty cables.