Atlas Copco leaped up 7.20% to Rs 260 in early trades on Monday after the company notched up exciting results and declared a solid 340% dividend.
Volumes, however, were none too impressive, at a mere 100 shares on BSE by 9:58 IST. The scrip has done well in recent sessions, rising 9.23% to Rs 242.50 on 28 March 2003 from Rs 222 on 21 March 2003.
In contrast, the BSE Sensex stood at 3,088.50, down 26.94 points.
After market hours Friday, Atlas Copco unveiled fourth quarter and full year ended 31 December 2002 results. For Q4, Atlas Copco posted a net profit of Rs 6.11 crore compared to a net loss of Rs 0.27 crore in the corresponding period of the previous year. Total income also increased by 20% to Rs 72.42 crore from Rs 60.38 crore in DQ 2001.
For the full year, the company registered a massive 281% rise in net profit to Rs 39.94 crore on an 8% increase in total income to Rs 255.11 crore (Rs 2.55 billion).
Both the results and the weighty dividend have prompted buying on the Atlas Copco counter on Monday. The board of directors recommended a dividend of Rs 4 per share (40%). In addition, considering the available liquidity and current satisfactory performance of the company, the board has also recommended a special dividend of Rs 30 per share (300%), taking total dividend to Rs 34 per equity share (340%) for the year 2002.
Atlas Copco operates in two segments - industrial and construction and mining.
The industrial segment accounted for 71% (or Rs 49.97 crore) of the company's sales in the December quarter and 65% (or Rs 164.42 crore) for the FY, while the rest (29% or Rs 20.18 crore in the quarter and 35% or Rs 86.85 crore in the FY), came in from the construction and mining segment.
The industrial segment accounted for 55% (or Rs 6.40 crore) of the company's PBIT in the December quarter and 53% (or Rs 24.02 crore) for the FY, while the rest (45% or Rs 5.19 crore in the quarter and 47% or Rs 21.28 crore in the FY), accrued out of the construction and mining segment.
ACIL commands dominance in most of its product categories and has over 25% market share in most compressor segments. Having successfully completed the consolidation and rationalisation of resources and operations, year 2002 was successfully focused on growth in revenues and profitability. The company launched a new series of screw compressors in the range of 7.5 to 15 hp ratings at pressures ranging from 7.5 to 13 bar which will meet the needs of small workshops
As on 31 December 2002, promoters held 50.99% stake in Atlas Copco. It might be recalled that Atlas Copco AB, Sweden, the majority shareholder of the company, had made an open offer to acquire the balance shares (49.01% of outstanding shares aggregating 5,528,844 of equity shares) held by Indian shareholders at a price of Rs 243 per share. The offer closed on 27 February 2003 and the shares tendered under the offer are in the process of being transferred to Atlas Copco AB. However, the company has furnished no other details after the open offer.
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