MUMBAI, Oct 14: Electrosteel Castings Ltd (ECL) has posted a net profit of Rs 37.03 crore in the quarter ended September 2012 compared to Rs 19.36 crore in the same period last year.
The company registered net sales at Rs 479.06 crore during Q2 FY 13 compared to Rs 441.44 crore in Q1 of FY 12. The production has also improved by 14 per cent during the quarter.
The production and sales of ductile iron (DI) pipes in the corresponding previous quarter were one per cent and three per cent respectively, a company statement said here.
ECL is the industry leader in the sphere of water infrastructure and its management.
Higher sales were achieved by company’s strategy of focussing more towards overseas markets through its subsidiaries and increasing its presence globally, penetrating new territories.
ECL has facilities in Elavur in Tamil Nadu, Haldia and Khardah in West Bengal.
On results, Uddhav Kejriwal, Wholetime Director Electrosteel Castings Ltd said, “The sharp increase in rupee against dollar has been beneficial for the company. The receivables are fully hedged for the current financial year at higher levels than the prevailing exchange rate”.
Kejriwal said the company had hedged all its import payable due upto March 13 taking advantage of sudden spike in rupees.
“The company has fully hedged its repayment of long-term foreign currency loan due in FY 13-14. We envisage that softening of prices of major raw materials i.E. Coking coal and iron ore will start benefiting the company in form of higher contribution from next quarter as there remains a time lag between fall in prices and its subsequent benefit,” he said.
Electrosteel Steels Limited, (ESL), the associate firm of Electrosteel Castings Ltd, has almost completed setting up its 2.51 MTPA steel plant near Bokaro with an investment of Rs 9,562 crore, Kejriwal said.
The release said current steelmaking capacity for India is 67 MT and by 2020 and expected to reach 120 MT. (PTI)
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