Foseco India is the leading supplier of metallurgical chemicals for the ferrous and non-ferrous foundry industry. Parent Foseco Plc, listed on the London Stock Exchange, has been associated with the metal industry for over 75 years and is acknowledged as a world leader in the supply of consumable products for use in the foundry industry with presence in 32 countries and major facilities in Germany, the US, the UK, Brazil, China, India, South Korea, and Japan

Quarter Performance

The operating income grew by robust 46% to Rs 54.72 crore in Dec 2010 quarter. The OPM increased by 210 bps to 15.8% on overall operating efficiency. Thus the operating profit grew by impressive 69% to Rs 8.62 crore. Raw material cost, as % to sales net stock adjusted, fell by 30 bps to 57%. Also the other expenditure and purchase of traded goods declined by 50 bps to 18% and 60 bps to 2%. The staff cost reduced by 90 bps to 7%.

The PBT grew by impressive 77% to Rs 8.18 crore on marginal growth in depreciation cost (by 23% to Rs 1.02 crore) and spurt in other income (by whopping 87% to Rs 0.68 crore). Further crash in effective tax rate by 140 bps boosted the net profit by whopping 81% to Rs 5.34 crore.

In the year ended Dec 2010, the topline grew by robust 48% to Rs 188.04 crore. However fall in OPM by 40 bps to 16.4% limited growth in operating profit to 45% to Rs 30.83 crore. Marginal growth in depreciation cost lifted the PBT by notable 53% to Rs 28.98 crore. The net profit settled with healthy 54% growth to Rs 19.30 crore partially boosted by 60 bps fall in effective tax rate.

The Board of Directors of the Company has recommended final dividend of Rs.7/- per equity share of Rs. 10. Thus the total dividend for CY 10 is Rs 17.

The promoters' share in the total shareholding remains unchanged at 75% in Dec 10 quarter. The promoters' have pledged ‘nil' shares of the company.

Currently the scrip is trading at Rs 464.20 on BSE.