Electrosteel profits up by 52 per cent

Kolkata, Oct 25 (UNI)Electrosteel Castings Ltd (ECL)has concluded the second quarter with a quantum 28.84 per cent jump in production when its net profit margin also increased by 52 per cent to Rs 29.51 crore.

Claiming that ECL had been able to reap rich benefit from the increase in its DI production capacity from 200,000 to 250,000 ton per annum during last year and substantially gained from the backward integration of its coke oven, sponge iron and 12 MW power plant at its Haldia unit, company sources here today said this was reflected in reduction in its raw material cost.

Moreover, the company's overall efficiency was aptly reflected in the increase in EBITDA margin at 22.46 per cent from 15.38 per cent in the corresponding previous quarter,the sources said adding that inspite of tough competition from Chinese and European DI pipe manufacturers ECL had been able to increase its export turnover by 19.4 per cent.

Meanwhile, the sources said ECL had concluded the pre-feasibility study of the coking coal mine and had started acquiring the land for the mine.

The mining plan had been approved and the remaining clearances were expected soon.

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