Date:14/04/2004 URL: http://www.thehindubusinessline.com/2004/04/14/stories/2004041400870200.htm

Back Sona Koyo to pay 40 pc; sales up 30%

Our Bureau

New Delhi , April 13

SONA Koyo Steering Systems Ltd, a leading manufacturer and supplier of steering systems, has recommended dividend at the rate of 40 per cent for the financial year ended March 31, 2004.

The dividend at the rate of 40 per cent to its equity shareholders is the highest dividend in Sona Koyo's 16-year track record of continuous dividend payment to its shareholders.

For the year 2003-04, the company has announced a sales growth of 30.13 per cent to Rs 285 crore from Rs 219 crore in the previous year.

The net profit grew by 108.18 per cent to Rs 18.82 crore from Rs 9.04 crore in the period.

According to Mr Surinder Kapur, Chairman and Managing Director, Sona Koyo Steering Systems Ltd, "Sona Koyo's operating margins continue to improve due to the company's expansion into the power steering segment.

Sona has targeted $20 million in exports by the year 2007. We will commence exports by 2005 by achieving orders of $7 million that year."

He further added, "We expect the domestic market to continue to grow at 20 per cent per year, which will give Sona the growth needed to achieve a turnover of Rs 500 crore by 2007."