Alfa Laval India has declared a 28% jump in turnover in its 3QFY01 ended September 30, 2000. However, a 29% jump in its expenditure has resulted in the profits taking a dent of 7% during the period.
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Alfa-Laval, a subsidiary of Alpha Laval AB is engaged in the manufacture of food processing machinery and effluent treatment machinery. It also manufactures evaporation , spray & flash drying plants. It products mainly cater to the dairy processing, vegetable oil plants, refrigeration plants, and food, beverage and fruit processing industries.
Alfa Laval had reported similar results in the first half of FY01. The company has seen a jump of 23% in turnover during 1HFY01, but its expenditure too surged by 22%. However, an extraordinary income of Rs 137 m received for the sale of its Tetra Pak business helped it post a stupendous 240% growth in bottomline during the first half. Also, the company's bootomline in the first half of 2000 (previous year) was deflated because of a Voluntary Retirement Scheme (VRS) initiated by the company.
Alfa Laval is the third major engineering company (after ABB and Wartsila) to show a two digit growth this quarter. The only exception has been Crompton Greaves, which showed a decline. Going by this trend, the engineering sector is showing signs of picking up.
At the current price of Rs 154, the company's stock trades at a P/e multiple of 12 times its 3QFY01 annualised earnings.The stock historically trades at a P/e of 22-25 times its annual earnings.
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