Shanthi Gears net down

CHENNAI: The turnover of Shanthi Gears, a subsidiary of the Chennai based Tube Investments of India during the quarter of FY 15 was up 3% to Rs 34.21 crore as against Rs. 33.19 crores in the same quarter last year. The net profit during the same period dipped by 45% to Rs 1.85 crores as compared to Rs 3.37 crore during the first quarter of FY 14.
During the first quarter, the company built its order book by Rs 48 crore."The increase in the orders booked during the quarter represents a growth of 19.6% over the previous year. Orders from export markets were also higher. Most of the key user segments in the domestic market remained flat during the quarter just ended. The company continues to remain focused on expanding its customer base, enhancing the distribution and service network and on improving its speed of execution. Intense competition in the market place and depressed markets exerted pressure on the company's profitability. The various cost management initiatives undertaken over the last few months together with a thrust on operating efficiencies have helped us mitigate this impact," the company said in a statement.
The company added that with an improvement in business confidence aided by the recent growth in the core sectors, it is expected that the growth in the industry will pick up in the coming quarters. "The current order book is at Rs 79 crore, and we will continue to maintain its focus on growing the customer base, enhancing its product range, reducing cost and improving deliveries to achieve a better performance in the coming quarters," the company said in a statement.