The Hindu Business Line : Commodity price rise hits Kalpataru Power

Mumbai, May 27 Increase in interest cost and financial commitment for warranties and guarantees for the projects has hit the net profit of Kalpataru Power Transmission Ltd for the fourth quarter. The profit has dipped by 21 per cent to Rs 50 crore (Rs 64 crore).

Net sales rose 20 per cent to Rs 629 crore (Rs 522 crore).

Mr Manish Mohnot, Executive Director, said that performance has been affected by the increase in the commodity prices, especially for fixed price contracts. The working capital of the company has come under pressure as the Rs 1,000-crore contract with a Maharashtra Government utility has back-ended. “Usually in such contracts 25 per cent of the money is paid upfront. But in this contract it would only be paid after we finish the project,” Mr Mohnot said.

For the fiscal 2007-08 the net profit has dropped by 6 per cent to Rs 149 crore (Rs 159 crore). The net sales rose 13 per cent to Rs 1,737 crore (Rs 1,524 crore).

At the closing of the trading on the BSE the stock was traded at Rs 990, a 0.91 per cent decline over the previous close of Rs 999.05.

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