Moser Baer strode up 6.5% to Rs 195.10 on Friday the company said it may hike product prices while announcing its Q3 results on Thursday.

The scrip of the compact disc maker hit a high of Rs 196.85, earlier. Around 256,000 Moser Baer shares were traded on BSE so far.

The stock has been on a roller-coaster ride of late. The scrip witnessed a surge early this month after the European Commission decided to terminate anti-dumping proceedings against the company with respect to the manufacture of recordable compact disks.

The rise today is the consequence of the company's announcing that it will consider a price hike in Q4. Subsequent to the improving market dynamics and favorable outcome of the anti-dumping investigations, MBI is now evaluating options to increase prices in Q4 March 2004, MBIL said.

So far, the company's current year's performance has been affected by pressure on profit margins which in turn has been due to a fall in product prices.

For Q3 ended 31 December 2002, MBIL posted a 7.8% rise in net profit to Rs 64.88 crore (Rs 60.14 crore) on a 74% growth in total income to Rs 297.91 crore (Rs 2.97 billion). MBIL has maintained guidance of a 10% growth in earnings for FY 2002-03.

Earlier, MBIL had also revised downwards its full year FY2002-03 guidance to just 10% as against the earlier guidance of a 23% to 27% growth in net earnings. The downward revision was amid anti-an dumping probe by EC due to which the company had deferred plans to increase CDR capacity from 760 million units (currently) to 1 billion units by 31 March 2003.

MBIL is one of the world's largest manufacturers of optical and magnetic data storage products.

The European Commission's decision to drop anti-dumping duty proceeding has come as a big relief for Moser Baer as the company exports about 45-50% of its products to Europe. The company is now likely to revive its previously deferred expansion plans. Earlier, MBIL had deferred plans to increase CDR capacity from 760 million units (currently) to 1 billion units by 31 March 2003 amid anti-dumping probe by EC.

Meanwhile, MBIL on 20 January 2003, clarified that it has an exposure of about Rs 3 crore to Emtec Consumer Media and it has no business with Emtec Magnetics which has filed for reorganization and insolvency protection.

The Emtec Group consists of two main companies, Emtec Magnetics GmBh (engaged in the production of professional Audio and Video tape) and Emtec Consumer Media GmBh (engaged in retail sales of consumer optical and magnetic media). Moser Baer is engaged in business activities with Emtec consumer Media GmBh group, which is unaffected by the insolvency of Emtech Magnetics. MBI has no unpaid dues from Emtec Magnetics.

Moser Baer's current total net exposure to Emtec Consumer Media is less than Rs 3 crore and all current supplies to the company are on prepaid cash basis, Moser Baer has said. Sales to Emtec Consumer Media accounted for around 8% of the company's volume in the first half of the year.