Vikas WSP has declared excellent results for the year ended March 2000. On an over 46% growth in the topline, the company has reported an over 79% growth in the net profit. An increase in the operating profit margin by 1% to over 37% accompanied by a 21% decline in the interest cost have been the main drivers of the company’s bottomline.
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The company is a leading exporter of guar gum–based water soluble polymers primarily to the USA and Europe which account for 85% of its exports. Guar gum is basically, the grinded endo–sperm (the substance found between the skin and embryo of the seed) of guar or cluster bean which is a rain fed drought–hardy crop grown in the north–western desert tracks of the country. It finds application in a host of industries such as textiles, paper, cosmetics, mining, explosives and food processing. Vikas’ clients include Nestle, Pepsi, Quest, Modern Foods, Bakeman’s etc.
The company has paid a 100% dividend in the current year and claims to have orders on hand of Rs 597 m for the coming year. At this rate, Vikas WSP is well on its way to achieving its targeted turnover of Rs 10 bn by 2005.
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