The Hindu Business Line : Essar Steel Q1 net zooms

ESSAR Steel Ltd (ESL) posted a net profit of Rs 207.71 crore for the quarter ended June 30, 2005, a 400-per cent rise from Rs 50.44 crore in the year-ago period.

The company's income during the quarter was Rs 1,652.89 crore, up 24.5 per cent, from Rs 1,327.74 crore in the corresponding period of the previous year.

Gross profit (before interest, depreciation and tax) during the period stood at Rs 538.86 crore (Rs 487.61 crore) . Finance costs were down at Rs 108.30 crore (Rs 137.79 crore), depreciation at Rs 98.17 crore (Rs. 101.04 crore) and tax (deferred tax, MAT and FBT together) at Rs 124.68 crore (Rs 59.49 crore).

The company said it had decided in principle to merge Steel Corporation of Gujarat Ltd and Hy-Grade Pellets Ltd, both 100 per cent subsidiaries with it, with effect from April 1. Mr Prashant Ruia, Managing Director, Essar Steel, said: "The results have underscored the value we attach to technology, customer satisfaction and international standards of quality. This is especially true in light of current softening of prices, rising imports and firm raw material prices. Our plan for capacity enhancement and total integration is on course and will make the company retain its competitive edge in domestic and international markets."

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