|
|
The daily news bulletin for the informed
wire & cable executive
Wire & Cable Industry news
Back to Wireworld News
|
October 30th, 2009
- General
Calcutta India - Usha Martin on expansion path.
|
Steel wire rope maker Usha Martin expects January-March revenue at 9-9.5 billion rupees on higher production, managing director Rajeev Jhawar said on Wednesday. The company's current steel production is at 80,000 tonnes per quarter and it would rise to 140,000 tonnes per quarter from the fourth quarter of the current fiscal, he said. "From the fourth quarter, results would perk up in terms of revenue generation and profitability as the new capacities would be commissioned," he said. The company is expected to complete most of its 21 billion rupees capital investment program by March 2010, and boost annual steel capacity to around 560,000 tonnes from 320,000 tonnes, he said.
The Kolkata-based company expects operating margins to improve to 22 percent in the fourth quarter from 17 percent, as result of backward integration of coal mines, Jhawar said.
"Coal should come to plants by next 2-3 weeks once it starts production. To start with we should produce 30,000 tonnes of coal a month, which will gradually increase to 50,000 tonnes by March 2010," he added.
"Once this integration takes place fully, our operating margins should increase to 22 percent."
Earlier in the day, the company reported a 64 percent dip in its July-Sept standalone net profit at 146.5 million rupees from 418.5 million rupees a year ago In the same period, net sales of the company were down by 18 percent to 4.82 billion rupees compared to 5.94 billion rupees reported a year ago.
"The slow and uncertain process of global economic recovery and volatality in raw material prices adversely affected the profitability, product volume and margins in the last quarter," Jhawar said.
|
|
|
