Thaindian News

Kolkata, July 29 (IANS) Speciality steel and wire rope manufacturer Usha Martin Limited Wednesday posted a consolidated profit after tax of Rs.32.03 crore for the first quarter of the current fiscal, against Rs.65.08 crore for the corresponding period last year.
“On consolidated basis, profit is down by almost 60 percent as our wire rod mill remained shutdown for 24 days for increasing capacity from 300,000 tonnes to 400,000 tonnes, which has been completed successfully. There was a loss of production of 22,000 tonnes this quarter,” managing director Rajeev Jhawar told reporters on the sidelines of its annual general meeting.

The company plans to improve its margins at the earnings before interest depreciation tax and amortisation level at 22 percent for 2009-10, up from 19 percent achieved in April-June this fiscal riding on higher cost savings resulting from mining own coal as well as drawing power from its own power plants, Jhawar said.

In April and May this year, it has commissioned four important plants - a 30 MW power plant, a bloom mill, a second direct reduction iron (DRI) and the wire rod mill.

The company plans to spend Rs.2,100 crore on capacity expansion, and has spent Rs.1,800 crore so far.

It wants to increase steel manufacturing capacity to 900,000 tonnes by the end of the current fiscal.

Jhawar said that with the commissioning of all the projects the cost of production would come down by Rs.4,000 per tonne. The present cost of production is Rs.21,000 per tonne.