Ispat profits down 46

CALCUTTA, NOV 28: Ispat Industries Ltd, the flagship of the ML Mittal group, today reported a 45.6 per cent fall in net profit to Rs 30.90 crore for the six-month period ended September 1997 as against Rs 56.79 crore in the same period of last year.

Net sales have declined from Rs 712.62 crore to 663.55 crore, showing a fall of around seven per cent. Gross profit after interest but before depreciation and taxation declined by 26.4 per cent from Rs 88.10 crore to Rs 64.85 crore. The provision for taxation would be considered based on the accounts for the full year closing on March 31, 1998.

The earnings per share on an annualised basis declined from Rs 4.93 to Rs 3.87. The company cited the recessionary trend in industry and steel in particular for the fall in profits and sales. Inventories have gone up from Rs 12.57 crore to Rs 34.05 crore. Total expenditure increased marginally from Rs 599.50 crore to Rs 601.46 crore, interest amp; finance charges from Rs 39.88 crore to Rs 41.33 crore and depreciation from Rs 31.31 crore to Rs 33.95 crore.