The Hindu Business Line : Ennore Foundries’ Q2 net rises to Rs 4.7 cr

(From right) Mr Dheeraj G. Hinduja, Director, Ennore Founderies; Mr V. Mahadevan, Managing Director, Ennore Foundries; and Mr V. Sankar, CFO, Ennore Founderies; at a press conference in Chennai on Monday. —

Our Bureau

Chennai, Oct. 22 Ennore Foundries Ltd has reported a net profit of Rs 4.68 crore for the July-September quarter, up 57 per cent from Rs 2.68 crore, for the corresponding quarter of last year.

Turnover increased to Rs 110 crore, 12 per cent higher than Rs 99 crore previously. The company’s Managing Director, Mr V. Mahadevan, attributes this to “continued thrust on production of high-end products such as blocks and heads.”

Profit would have been higher but for Rs 9-crore increase in interest costs. This in turn was because trial production had commenced from the new capacity added at Sriperumbudur—interest costs have had to be charged to profits (and not capitalised), but the full benefits of the added capacity will kick-in from the coming months.

Even as the present phase of investment in expansion is coming to a close, the company announced fresh capex spends of Rs 350 crore for the next three years. Private equity may be accessed for funding.

The present expansion programme, costing Rs 200 crore, would add 50,000 tonnes at Sriperumbudur and 6,000 tonnes at Ennore, taking the total capacity with the company to 152,000 tonnes. After the second phase of expansion, Ennore Foundries’ capacity will rise to 230,000 tonnes, Mr Dheeraj Hinduja, Director, Ennore Foundries, said at a press conference here today.

Both Mr Hinduja and Mr V Mahadevan, said that the company continued to scout for acquisition opportunities abroad.

Mr Mahadevan said that the company, which already has 125 windmills for itself, would also continue to invest in non-conventional energy.

The new Sriperumbudur plant alone would need about 40 MW of power capacity.

Last year, the metal smelter spent Rs 58 crore on power and fuel alone, about 15 per cent of its turnover of Rs 395 crore.

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