Everest Kanto Cylinder Ltd (EKC), leading player in high-pressure gas cylinder, has reported today a 57 per cent rise in consolidated net profit at Rs. 35.01 crore for the first quarter ended June 30, 2008 as compared to Rs. 22.25 crore in the corresponding quarter last year.

Consolidated net sales during the first quarter grew by 70 per cent to Rs. 189.15 crore compared to Rs. 111.31 crore in the corresponding quarter last year. During the quarter, the consolidated sales include those of its step down subsidiaries EKC Hungary Kft, Hungary and CP Industries Holdings, Inc., USA. The earning per share (fully diluted) stood at Rs 3.46 as on June 30, 2008. Highlighting the growth strategy and Q1FY09 performance of the company, Mr. Prem Khurana, Chairman and Managing Director said, “We continue to remain bullish on the business outlook as usage of CNG cylinders is gaining increased acceptance due to rising crude prices and government regulations.” He also added, “Improved availability due to upgradation in distribution infrastructure in the form of pipelines network is also aiding the demand.”

Meanwhile, the company’s wholly owned subsidiary in China has successfully commenced its commercial production in May 2008 with an initial capacity of 200,000 cylinders and plans to ramp up its capacity to one million cylinders in the next 3 to 4 years. The investment in the first phase of its operation is expected to be around US$ 50 million.

EKC’s wholly owned subsidiary in UAE, EKC International FZE, Dubai, has formed a wholly owned subsidiary in Hungary by the name of EKC Hungary Kft. Further EKC Hungary Kft has established a wholly owned subsidiary in USA by the name of CP Industries Holdings, Inc. Together EKC Hungary Kft and CP Industries Holdings, Inc. have acquired all the assets of CP Industries, (a division of Reunion Industries, Inc.) for US$ 66.30 Million.

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