PAT up by 57% during Q1 of Fiscal 2007-08

Kolkata, Jul 23 (UNI) Electrosteel, a leading steel company, has posted net profit of Rs 29.82 crore in the first quarter of the current fiscal compared to Rs 18.94 crore, a growth of 57 per cent.

The company's overall revenue was recorded at Rs.320.83 crores as compared to Rs.260.61 crores during the corresponding quarter of 2006-07.

A company release said it has mitigated the impact of rupee appreciation and rise in input costs, iron ore in particular, by prudent forex management resulting in a quantum jump of PBT&PAT by 41 per cent&57 per cent respectively.

To offset the rise in cost of iron ore, which is a major input in the manufacturing process, the company would instal a Sinter Plant.

The iron ore fines would be utilised in the sinter plant and help contain raw material costs. The project was expected to be commissioned by December 2007.

The Board has also approved a proposal to split every equity share having a face value of Rs 10 each into ten equity shares of face value of Rs 1 each.

The company has been granted allocation of Parbatpur Coal Block in Jharia Coal Field for mining of coal for captive consumption.

Other infrastructure development works were also in progress. This captive source would ensure that the company gets coking coal at lower cost and avoid the impact of demand-supply volatility in the market. The benefit of the coal mines shall start accruing from 2008-09 onwards.

The company has been allotted an iron ore mine in Kodolibad, Jharkhand.

UNI