Ispat profit declines

MUMBAI, July 1: The profitability of Ispat group companies, belonging to the Mittals, has taken a beating during the year ended March 1997. The net profit of Ispat Industries, the flag ship company of the group, has declined to Rs 78.83 crore from Rs 100.53 crore last year.

Even though the sales turnover of the company rose to Rs 1388.26 crore from Rs 1366.34 crore, the gross profit has dipped to Rs 145.71 crore from Rs 160.80 crore previously.

Ispat Industries which came out with a Rs 800 crore rights issue recently, had projected a net profit of around Rs 91 crore for the year.

Depreciation for the year had amounted to Rs 97.69 crore 8220;as the method of charging depreciation on a section of the plant and machinery which was hitherto provided on a single shift basis has not been changed to multiple shift basis.8221; However, as the company has transferred a sum of Rs 30.87 crore from the general reserve, depreciation has come down to Rs 66.82 crore. Otherwise, the net profit of the company would have fallen to around Rs 40 crore.