Usha Martin’s Q1 net profit dips 38.7 percent

July 29th, 2011 - 11:32 pm ICT by IANS  

Kolkata, July 29 (IANS) On the back of a fire incident at its Jamshedpur steel plant, Usha Martin’s consolidated net profit went down by 38.7 percent in the first quarter of this fiscal, a top executive said Friday.

Consolidated net profit of the company in the first quarter ending June 30, 2011, stood at Rs.25.67 crore as against Rs.41.86 crore registered in the same quarter last year.

“Profit levels are down at the end of first quarter on the back of the fire incident at our steel plant that happened on March 28 this year. As a result, we had to shut down production for six weeks amounting to a loss of Rs.20 crore,” said Usha Martin managing director Rajeev Jhawar here.

The company has achieved financial closure for its Rs.1,200 crore capital expenditure plan. Of the total amount, the company plans to utilise Rs.1,050 crore to consolidate the steel business and another Rs.150 crore to expand the wire and rope unit capacity.

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