Usha Martin records 57 per cent growth in net profit in six months
Kolkata,Oct 25 (UNI) Usha Martin Limited, a leading manufacturer and exporter of wire ropes and speciality steel, has recorded an unprecedented 57 per cent jump in net profit margin to Rs 58.20 crores during the first six months of the current fiscal when its consolidated sales had also touched the Rs 985.06 crores mark.
Announcing the first half result of the company having multiple manufacturing facilities across the country and abroad including Ranchi, Jamshedpur, Hoshiarpur, Bangkok, UAE, U.K. and the USA, Usha Martin Managing Director Rajiv Jhawar here today said in order to increase their product portfolios they had decided to set up a Bright Bar manufacturing plant near Chennai within the next two years with an estimated investment of Rs 25 crores from internal acruals.
About ten acres of land had already been purchased for this purpose and the construction work began, he said.
"We are also planning to acquire a mini Wire Ropes plant in Houston, USA with an annual production capacity of 6,000 tonnes, mainly to cater to the North American market which has been growing steadily for the past few years", Mr Jhawar informed while elaborating his expansion programes.
He said since the demand for steel as well as wire ropes had also gone up manifold within the country, they had decided to increase the production from 30,000 tonnes to about 90,000 tonnes within the next 24 months.
He, however, made it clear that a sizeable portion of the added capacity would be utilised for exports which contributed about 40 per cent of the Usha Martin's total sales.
Highlighting other aspects of the financial performances, Mr Jhawar said during the second quarter(July to September) of the current fiscal, the profit after tax was increased to Rs 23.72 crores recording over 34 per cent jump from the corresponding period of last year.
Similarly the overall sales was up by 19.8 per cent to Rs 351.43 crores from Rs 295.35 crores during July-September 2005.
Regarding his plan to acquire some captive mines to source the raw materials, Mr Jhawar said they were expecting to win the bids for two iron ore mines and and many coal mines in Madhaya Pradesh and Jharkhand respectively within the next few months. But the amount of total investment for this purpose was yet to be finalised, he said replying to another query.
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