Yokogawa Blue Star surged on Wednesday, after the company confirmed that it has bagged a $3.85 million order.
Shares of the Bangalore-based automation systems provider were up 9.9% at Rs 44.40 on the BSE in mid-morning trades, ruling at the day's high. 8,500 shares changed hands on the counter.
YBSL is a thinly traded scrip. After rallying from its mid-October 2002 low, the scrip eased from the higher levels in recent sessions. From a low of Rs 26 on 25 October 2002, the scrip surged by 71% in a few months to a recent high of Rs 44.50 on 14 January 2003. Profit-taking saw the scrip slip a low of Rs 40.40 on 21 January 2003. The scrip spurted today after the company's confirmation of bagging an order. It currently trades at 52-week high of Rs 45.85, which the scrip hit recently on 15 January 2003.
In response to recent news reports of bagging an order, YBS, on Tuesday, confirmed to the National Stock Exchange of having secured an $ 3.85 million order from Samprogetti of Italy and Tecnip-Coflexip of France for supply of Distributed Control System to Oman-India Fertiliser Project in the Sultanate of Oman.
YBSL provides automation systems as well as plant-centric solutions including production management, manufacturing execution, process control and maintenance management among others.
However, the company's industrial automation business is highly sensitive to the rate of growth in industrial investments. The company's dependence on the investment climate has resulted in a high degree of volatility in its earnings in the last few years.
In Q2 ended September 2002, YBSL reported a net profit of Rs 1.74 crore as compared to a net loss of Rs 0.54 crore in the corresponding period of the previous year. Net sales surged by 29% to Rs 42.80.
In FY 2002, YBSL reported a net loss of Rs 1.23 crore as compared to a net profit of Rs 3.33 crore in FY 2001. Net sales declined by 6% in FY 2002 to Rs 131.18 crore as compared to Rs 139.84 crore in FY 2001.
Earlier, in mid-October 2002, YBSL bagged a major order from Sterlite Industries for the supply and commissioning of its Plant Information Management Systems called Exaquantum & Advanced Process Control Solutions using advanced solutions from an Australian company, Unac.
Earlier, in July last year, the company announced its tie-up with Unac Advanced Solutions, a division of Hunter Control, Australia, to offer advanced process control and optimisation services in the country to mining, metallurgy, minerals, coal, utilities and food industries using Unac's products.
The company, in April 2002, filed a petition against Chennai-based Soffia Software for non-payment of dues of about Rs 1 crore. The case pertained to a body-shopping arrangement between the two companies, under which Soffia placed YBSL employees abroad.
The major shareholders in YBSL are Yokogawa of Japan and Blue Star. Yokogawa holds a 40% stake in the company, while Blue Star holds 29%. The company has an equity base of Rs 8.75 crore.