Finance Minister Arun Jaitley proposed to cut the corporate income tax rate to 25 percent for companies with a turnover of upto Rs 250 crore. He addressed the key demand of the India Inc that were demanding lower tax payouts to enable higher investments and jobs creation. "Towards fulfilment of my promise to reduce corporate tax in a phased manner, I now propose to extend benefit of reduced corporate tax rate of 25 per cent to companies which have reported turnover of up to Rs 250 crore in financial year 2016-17," said Jaitley. There are over 1300 companies that had reported turnover (net sales) less than Rs 250 crores in FY17. In the volatile trading session, where sensex lost -0.16% after the budget speech, there were 23 companies that gained over 5 percent. Let us look at the major gainers that have reported turnover less than Rs 250 crores in FY17:
Emmbi Industries gained close to 13 per cent today. The company is engaged in the manufacture and sale of FIBC (Flexible Intermediate Bulk Containers) and Woven Sacks and various woven polymer based products like Container Liners, Protective Irrigation System, Canal Liners, Flexi Tanks, Car Covers. It reported turnover of Rs 229 crores in FY17. In Q2FY18, it reported top line and bottom line growth of 13.5 per cent and 13.1 per cent respectively.
Flex Foods gained nearly 11 per cent today. It is engaged in the growing and processing of Culinary Herbs , Mushrooms, Fruits and Vegetables catering to the Domestic and International markets mainly in Europe, USA, Canada and Australia. The company reported turnover of Rs 85 crores in FY17. It reported healthy bottom line growth of 61.3 percent in Q2FY18 aided by substantial increase in other income and reduction in interest costs.
Freshtrop Fruits gained 7.55 per cent today. Supplier of grapes and pomegranates from India to supermarkets in Europe. It supplies its products to supermarkets such as ASDA, Tesco, Marks & Spencer, Albert Hynes, DelHaize, Carrefour, Migros. The company reported turnover of Rs 140.63 crores on FY17. In Q2FY18, the company reported 97 per cent jump in top line. However, it widened its net loss due increase in expenditure and tax costs.
Shivalik Bimetal Controls gained 5.42 per cent today. The company is specialized in the joining of material through various methods such as Diffusion Bonding / Cladding, Electron Beam Welding, Solder Reflow and Resistance Welding. It reported turnover of Rs 130.23 crores in FY17. In Q2FY18, the top line and bottom line grew by 23.5 per cent and 44.5 per cent respectively.
Arihant Superstructures gained 5.1% today. It's a real estate builder and developer in Navi Mumbai, which has under construction building projects, including residential properties, studio apartments and luxury apartments. It reported net sales of Rs 184.8 crores in FY17. In Q2FY18, top line grew by 32.6 per cent. However, the bottom line fell by over 12% due to increase in total expenditure and decline in other income.