McNally Bharat to pay 10%

The board of BM Khaitan Group company McNally Bharat Engineering Company Ltd on Friday recommended a dividend of 10 per cent (Rs 1 a share) for the year ended March 31, 2012. In FY11, the company had paid a dividend of Rs 2 or 20 per cent a share of Rs 10. According to a top company official, despite around 46 per cent surge in PAT, the board took the decision to face a difficult year ahead. The company has adopted a strategy to preserve cash to fund the growth of the company. At present, the order book position of the engineering company stands at around Rs 3,800 crore, sources told Business Line . During 2011-12, it clocked a total income of Rs 2,079.20 crore (Rs 1,757.87 crore) and a PAT of Rs 65.65 crore (Rs 47.91 crore). The McNally Bharat stock closed down 0.79 per cent at Rs 87.70 on the BSE.