The Hindu Business Line : Rupee rise to impact Tinplate’s margins

Reduced export earnings on account of the appreciation of the rupee, higher input costs and the pressure on margins is expected to impact the financial performance of The Tinplate Company of India in the current fiscal.

According to Mr B. Muthuraman, Chairman, the short-term outlook for the company “is not so good”. In first quarter of 2007-08, the appreciation of the rupee and an increase in the price of tin have adversely impacted the company.

During the period April-June 2007, the company’s profit before tax went down to Rs 70.91 lakh, from Rs 7.12 crore during the corresponding period of last fiscal, he told shareholders at the company’s 88th annual general meeting held here on Friday.

Mr Muthuraman said tinplate prices had gone up and the company’s margins were under pressure. In view of the expected growth in the market for tinplate, the company has embarked upon a Rs 210-crore expansion plan, which envisages augmentation of the Jamshedpur plant’s production capacity to 3,80,000 tonnes per annum. During the year ended March 31, 2007, The Tinplate Company of India Ltd earned a net sales income of Rs 454.74 crore, against Rs 405.96 crore in 2005-06. The profit before tax in 2006-07 stood at Rs 30.68 crore (Rs 39.50 crore). The profit after tax in 2006-07 was Rs 18.88 crore (Rs 48.95 crore) (including additions from deferred taxations). No dividend was declared for the last fiscal.

More Stories on : Metals | Outlook | Forex

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Nipuna records $2-m loss

CIAL posts Rs 37-cr profit

UltraTech posts 23% rise in Q1 net to Rs 259 cr

Ambuja Cements Q1 net up on one-time gain

Kirloskar Bros Q1 net profit down 34%

Cipla Q1 net profit down 30%

Jain Irrigation net up 61% at Rs 28 cr

Finolex Cables Q1 profit up at Rs 31.8 crore

Siscol Q1 net, turnover up

Exide net surges 84% at Rs 70 cr in first quarter

Areva operating profit up

Satyam Q1 net rises 7% at Rs 378.32 cr

Mastek consolidated Q4 net up 15%

Rupee rise to impact Tinplate’s margins

State Bank of Indore net profit jumps six-fold

State Bank of Bikaner & Jaipur Q1 net up 22%