Monnet Ispat Q4 net profit down 36 at Rs 53.04 cr
Net sales of the company declined by 19.41 per cent to Rs 432.23 crore during Q4.
Hit by a significant drop in sales,Monnet Ispat and Energy today reported over 36 per cent decline in standalone net profit at Rs 53.04 crore for the fourth quarter ended March,2013.
The company had reported standalone net profit of Rs 83.09 crore in the corresponding period of 2011-12. It did not publish the consolidated results for the last quarter.
Net sales of the company declined by 19.41 per cent to Rs 432.23 crore during Q4 vis-a-vis Rs 536.35 crore in Q4 of FY’12,Monnet said in a filing to the BSE.
Company’s expenses,at Rs 353.47 crore,were nearly 78 per cent of its net sales during the quarter. Its interest outgo also went up over 24 per cent at Rs 30.12 crore in the last quarter.
For the entire 2012-13 fiscal,Monnet reported over 13 per cent fall in standalone net profit at Rs 250.32 crore as its performance was impacted due to subdued sales and over 37 per cent increase in interest payments. Standalone net sales of the company stood at Rs 1,957.43 crore in the last fiscal.
On consolidated basis,Monnet’s net profit was down over 15 per cent at Rs 223.46 crore though it reported nearly 4 per cent rise in net sales at Rs 2,065.91 crore.
In a separate statement,the company said that it has completed construction of its integrated steel plant of 1.5 million tonnes at Raigarh,Chhattisgarh and the plant is under stabilisation process.
“The plant will produce bars and plates,once stabilised and operationalised fully. The company’s projections for revenue and profitability are expected to show quantum jump in the current and ensuing year,” Monnet said.
Company Chairman and Managing Director Sandeep Jajodia said that last year was very challenging for the steel sector due to tepid demand and slow economic growth. Besides,rise in raw material costs is also affecting steel industry’s performance.
“Going forward as the economic growth catches pace,the demand will revive and we will be able to cater to the demand through products that would be coming from our 1.5 MTPA integrated steel plant at Raigarh,” he added.
Monnet Ispat is primarily in manufacturing and marketing of sponge iron,steel and ferro alloys. Besides,it is also engaged in mining of mineral assets like coal and iron ore.
The company,through one of its subsidiary,is now expanding into merchant power sector and is constructing its first 1050 MW power plant in Odisha’s Angul. The company also has plans to enhance the capacity further to 1710 MW in future.
Shares of Monnet today fell 2.16 per cent to close at Rs 160.50 apiece on the BSE.
Share
