Uttam Galva Steels Q1 operating profit up to Rs 56.24 crore

Mumbai, July 29 (UNI) Uttam Galva Steels Ltd. (UGSL), a significant player in the Indian steel business has recorded an operating profit of Rs 56.24 crore in the first quarter ended June 30, 2006 as compared to Rs 51.42 crore in the corresponding quarter of the previous year.

Gross Profit for the period stood at Rs 37.75 crore, in comparison to Rs 32.28 crore in the corresponding quarter last year. This is despite a higher provision for depreciation of Rs 12.24 crore as against Rs 8.57 crore in the corresponding quarter of the previous year.

Gross Sales for the quarter stood at Rs 574.71 crore as against Rs 561.05 crore for the corresponding quarter the previous year.

Exports for the quarter stood at Rs 321.66 crore as compared to Rs 304.32 crore of the corresponding quarter the previous year.

Commenting on the results, Uttam Galva Steels Ltd. Director (Commercial) Ankit Miglani said, ''Our performance in this quarter has been satisfactory.

We have embarked on various major expansion projects, which are in various stages of completion. The benefit of this expansion will be seen in the coming quarters.'' As a part of the company's expansion plans, the production capacity of cold-rolled steel is being increased by 100 per cent to meet growing global demand. The capacity will be uupped from an existing 0.5 million tones to 1 million tone per annum.

UNI AR GB SKB1708