Mumbai: Indian Rayon and Industries has posted a net profit of Rs 377.3 million for the quarter ended 30 September 2002 as compared to Rs 151.2 million in the quarter ended 30 September 2001.
The total income (net of excise) has increased from Rs 3651.6 million in the quarter ended 30 September 2001 to Rs 4,124.4 million in the quarter 30 ended September 2002. The company, in its future outlook, said the performance of all businesses is expected to improve. The overall outlook for the company's future is positive.
Recently, the company approved a scheme to demerge its insulator division and to form a separate joint-venture company with NGK Insulators of Japan. The proposed restructuring will be effected through a court process whereby the insulator business will be hived off with effect from 1 August 2002 to a new company named Vikram Insulators Pvt Ltd.
The new company is specially created for this purpose against an allotment of 12.49 million equity shares of Rs 10 each at par and the balance in cash / securities approximating to Rs 1,250 million ($25 million).
On completion of demerger, which is expected by December 2002, NGK Insulators will subscribe to 12.5 million equity shares, amounting to 50 per cent of the share capital of Vikram Insulators in the rupee equivalent of $25 million.