Ennore Foundries earns net profit Rs 66.58 million in 4-Qtr

Chennai, May 3 (UNI) Ennore Foundries, a member of Hinduja group, has earned a net profit of Rs 66.58 million during the fourth quarter ended March 31, against Rs 46.32 million posted in the corresponding quarter of the previous fiscal.

The increase in the profit was mainly due to enhanced delivery of castings with higher realisations, made possible through the enlarged production of higher-end products, Mr Mahadevan, Managing Director told a press conference here today.

He said the total revenues of the company for the fourth quarter also up 30 per cent at Rs 1106.74 million and for the financial year 2006-07, the net profit was up by 16 per cent at Rs 161.65 million.

"This has been a year of continued growth. The demand for castings remains buoyant and we believe this growth momentum can be sustained", he said.

On the expansion plans, he said the main equipment installation were nearing completion at the Green field foundry project at Sriperumbudur and the commercial production at this 60,000 tonne capacity plant would start during the second quarter of 2007-08.

He said 40 per cent of the total production in the green field project would be exported to European and US truck and car manufacturers. Production in the green field project would also mark 30 per cent additional capacity, he added.

On acquisitions, Mr Mahadevan said the company was looking at three different strategies-techology advantage, market availability and foundries with arm of OEM. "We have not identified any company, but looking at seriously", he added.

UNI