The new foundry commissioned at Sriperumbudur near Chennai has successfully commenced commercial production of castings during the year. The profit before interest, depreciation and tax has gone up by 27 per cent at Rs 52.09 crore (Rs 40.89 crores), Company Managing Director V Mahadevan told newspersons here today.
Interest and depreciation stood at Rs 10.03 crore (Rs 4.79 crore) and Rs 16.16 crore (Rs 11.07 crore) as the new plant went on stream.
Profit Before Tax was up at Rs 25.90 crore (Rs 25.02 crore) and Profit After Tax at Rs 16.92 crore (Rs 16.17 crore).
The company has successfully completed the issue of GDRs amounting to 15 million US Dollar during April 2008.
"By optimizing the product mix and focusing on efficiency improvement, we were able to improve our operating margins. We envisage further improvements during the year 2008-09 with the enhanced capacity available at the new plant and the growing demand from existing and new customers both domestic and international," he said.
During the current financial year, considerable increase in output was targeted from the new foundry.
Talking about growth plans underway, Mr. Mahadevan said "further investments planned (of around Rs 350 crore) will be completed in 2/3 years. The company had already acquired lands at Hyderabad and further at Sriperumbudur in line with these investment plans." Talking about value addition, he pointed out the investment plans also included creation of machining facilities for specific customers to supply machined castings.
"During 2008-09, the company will be investing further in the R&D Centre at Chennai to service the customers better and to reduce development time and also in the new plant at Sriperumbudur to enhance the capacity to 72,000 tonne per annum from 2009-10," he added.