Usha Martin posts Rs.71.8 crore net loss in Q2
October 31st, 2011 - 11:16 pm ICT by IANSKolkata, Oct 31 (IANS) After excessive rainfall in mining areas and flood at its Thailand plant, speciality steel and wire rope producer Usha Martin Monday declared a net loss of Rs.71.8 crore during the second quarter ending Sep 30, 2011 as against a Rs.32.5 crore net profit last year.
“In the mining areas, rainfall registered in the second quarter was 1,170 mm against 530 mm in the same period of the previous year. This excessive rainfall has led to constraints on supply of captive minerals to steel and wire rope plants. We had to buy 14,000 tonnes of pellets from outside sources to keep our plants operational,” Rajeev Jhawar, managing director of Usha Martin, said here.
The company has hired a consultant agency to chalk out means to control the excessive water that is affecting the mining process and expects a report to be submitted within two months.
The company has reported a loss of Rs.120 crore arising out of restatement of outstanding foreign currency loans and acceptances on account of depreciation of rupee against the dollar.
Flood and torrential rainfall have affected production at the Thailand plant of Usha Siam Steel, a subsidiary of Usha Martin. The plant, which has been completely shut down, had a capacity of 3,000 tonnes per day.
The company has formed a disaster management group to assess the costs to restart operations.
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- Usha Martin's Q1 net profit dips 38.7 percent - Jul 29, 2011
- Usha Martin to invest Rs.1,200 crore to set up plants - May 10, 2010
- Usha Martin net falls to Rs.14.65 crore - Oct 28, 2009
- Usha Martin expects to complete expansion in 30 months - Jul 27, 2010
- Essar Steel commissions Phase 1 of Odisha pellet plant - Apr 09, 2012
- Usha Martin posts 50 percent drop in profit - Jul 29, 2009
- Usha Martin consolidated net up nearly 6 percent - May 12, 2009
- Usha Martin's third quarter profit drops 31 percent - Jan 14, 2010
- ACC profit plunges 77 percent on plant closure - Oct 21, 2010
- JSW Steel Q1 net profit up 65 percent - Jul 26, 2011
- Usha Martin plans to cut steel production cost from March - Jan 29, 2009
- Three rescued in Goa mining accident - Jul 16, 2011
- Tata Steel's first quarter profit jumps three-folds - Aug 12, 2011
- JSW Steel quarterly net profit rises 16 percent - May 16, 2011
Tags: consultant agency, currency loans, disaster management, excessive rainfall, excessive water, foreign currency, kolkata, management group, mining areas, net profit, oct 31, pellets, restatement, rs 120, rupee, siam, speciality steel, torrential rainfall, usha martin, wire rope