Financial Daily from THE HINDU group of publications
Tuesday, Jun 13, 2006
Financial Daily from THE HINDU group of publications Tuesday, Jun 13, 2006 |
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Corporate
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Financial Performance Corporate Results - Steel Alloy Steels posts profit after a decade Our Bureau
Turnaround ASP has also posted the highest ever turnover at Rs 659 crore. It was almost written off as a basket case not very long back in the late nineties
Kolkata , June 12 Alloy Steels Plant (ASP) has posted a net profit of Rs 19.11 crore in 2005-06, marking turnaround after a decade. The plant's previous highest profit was Rs 4.78 crore in 1992-93. It last registered a net profit of Rs 1.12 crore in 1995-96. ASP has also posted the highest ever turnover at Rs 659 crore in the last financial year, marking a growth of 18 per cent over the 2004-05 turnover of Rs 567 crore. A press release from ASP said the plant's emphasis on richer product basket, value-addition, achieving better realisation for the products, optimising input management, reduction in unit cost and improving yields substantially, had helped it ward off stiff challenge from its domestic competitors. Incidentally, Alloy Steels Plant was almost written off as a basket case not very long back in the late nineties, owing mainly to the industrial downturn, sluggish economy and stiff domestic competition.
Giving credit
"The credit for the turnaround goes to the workforce" said Mr N.P. Jayaswal, Executive Director of ASP. He further said the plant's performance assumes significance owing to the fact that it has been grappling with a host of challenges together. The company's Rs 460-crore upgradation programme has already started and the first unit - Argon Oxygen Decarborisation unit - worth Rs 42 crore is expected to go on stream this year. Similarly, conditioning shop, forge shop, power distribution system and other areas would also see investments soon. Sources said that with the new installations, production of liquid steel would jump from 1.64 lakh tonnes to five lakh tonnes. So, the production of stainless steel slabs would increase to two lakh tonnes. Capacity of long products would be to the tune of three lakh tonnes. A significant factor of this modernisation programme is creation of greater synergy between Alloy Steels Plant and Salem Steel Plant as the two-lakh tonnes of stainless steel would be sent to the latter for finishing into hot and cold rolled coils. Analysts, however, feel that ASP needs to rationalise its manpower further while bringing in better technology with greater automation to compete with the domestic producers of special steel, who operate at only about 6-8 per cent manpower costs.
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