Mumbai: The board of directors of Sona Koyo Steering Systems (Sona), which has a technical and financial collaboration with Koyo Seiko Co, Japan (Koyo), has recommended a dividend at the rate of 28 per cent (20 per cent last year) for the financial year ended 31 March 2003.
The dividend at the rate of 28 per cent to its equity shareholders is the highest dividend in Sona''s 15 years'' track record. In the last fiscal ended 31 March 2003 sales grew by 6.8 per cent from Rs 205 crore to Rs 219 crore, and the profit before tax grew by 45 per cent from Rs 622 lakh to Rs 904 lakh.
The improvement in the results is thanks to a change in the product mix due to an increase in hydraulic power steering sales and the sales increase for multi-utility vehicles (MUVs). In the current year Sona will increase their sales of hydraulic power steering, which will become 26 per cent of its total sales compared to 7 per cent four years back.
Sona, the flagship company of the Sona Group, is a technical and financial joint venture of Koyo. Sona Koyo''s product range includes hydraulic power steering systems, manual rack and pinion steering systems, collapsible, tilt and rigid steering columns for passenger vans and MUVs, rear axle assemblies and propeller shafts.
The Sona group''s major customers include Maruti Suzuki, Hyundai Motors India, Hindustan Motors (Mitsubishi Lancer), Telco and Mahindra & Mahindra.