The Hindu Business Line : Ispat Ind fourth quarter net at Rs 82 cr

Mumbai June 6 Ispat Industries has reported a fourth quarter net profit of Rs 82 crore, against a loss of Rs 153 crore in the corresponding year-ago quarter.

Net sales rose to Rs 2,105 crore, from Rs 1,281 crore a year earlier. Operating profit amounted to Rs 541 crore (Rs 163 crore). Profit before tax stood at Rs 134 crore against a loss before tax of Rs 225 crore.

The company posted a net loss of Rs 9.53 crore for the year ended March 2007. Its net loss for the previous fiscal was Rs 812 crore. Total Income (net of excise) rose to Rs 7,595 crore, from Rs 5,010 crore.

Power and fuel cost for the quarter (Rs 168.6 crore) and year (Rs 1,153 crore) are net of Rs 201.6 crore being Regulatory Liability Charges refundable to the company by the Maharashtra State Electricity Distribution Company Ltd in terms of an order of May 18, 2007 issued by the Maharashtra Electricity Regulatory Commission (MERC), said a statement from Ispat Industries. The above regulatory liability charges pertaining to the period December 2003 to September 2006 were charged as expense by the company in the respective periods, and have now been recognised as income in terms of the above order of MERC, the company said.

The auditors in their report on the company's accounts for the year ended March 31, 2007 have expressed their inability to express any opinion on the accounting of Deferred Tax Asset of Rs 623.6 crore.

"However, based on the future profitability projections, the company is virtually certain that there would be sufficient taxable income in the future, to claim the above tax credit," the statement said.

The company's shares declined by 2.56 per cent on BSE, to close at Rs 15.25 on Wednesday.