Kolkata: Heavy engineering PSU Andrew Yule & Company Ltd has turned around after seven years and posted a net profit of Rs two crore during the financial year 2007-08.
A top company official told PTI that besides Andrew Yule, all the associate companies had also reported profits for the last financial year.
Revenue of Andrew Yule, engaged in engineering, electrical and tea businesses, stood at Rs 170 crore for 2007-08 fiscal as against loss of Rs 90 crore in 2006-07.
“It has been a great achievement for the Kolkata-based PSU which was referred to BIFR in 2002”, the official said.
Asked about the reasons for the turnaround, the official said that it was due to a combination of two factors -- improved market scenario and better management.
The official said that the networth of the company was positive, but the accumulated losses were yet to be wiped out completely. Meanwhile, the company was process of implementing the revival package approved by BIFR.
The official said that consultancy firm Deloitte & Touche was involved in overseeing the stake sale exercise of Andrew Yule in one of its associate companies, Dishergarh Power Supply Corporation Limited.
At a board meeting of the company held during the day, a committee was formed for the stake sale process.
Through a competitive bidding process, Andrew Yule would sell its and financial institution’s stake in Dishergarh Power which is about 52%.
The official said that expressions of interest (EoIs) would be invited shortly from interested parties. “We intend to invite EoIs in the first week of June,” the official said.
After stake sale of Dishergarh Power, the company would go ahead with further stake sell in other companies, namely Tide Water Oil and Phoenix Yule.
In both the companies, Andrew Yule has 26% stake each. The proceeds of the stake sale would be utilised for revival of the PSU.