The Hindu Business Line : Usha Martin net profit jumps 62%

During the period April-June 2005, the company's net profit went up to Rs 13.23 crore from Rs 8.15 crore recorded during the corresponding period of last year.

Buoyed by the upbeat performance, the company has decided to invest Rs 462 crore on augmenting its specialised steel-making capacity and related mining and co-generation power facility located at Jharkhand.

Speaking to newspersons after the conclusion of the company's 19th annual general meeting held here today, its Chairman, Mr B.K. Jhawar, said ICICI Securities had been appointed as merchant bankers for finalising the financial structure of the project, which is expected to be ready within the next 3-4 months. Of the proposed investment corpus, over Rs 400 crore would be invested in mining and steel with a view to augmenting the specialised steel producing capacity to 500,000 tonnes per annum from 340,000 tonnes per annum at present. The augmented production would cater to the specialised steels requirement of the automotive sector.

Mr Jhawar said investments would also be made in iron ore and coal mines and subsidiary companies. The benefits of the investments would start accruing within the next 12 months.

According to him, the company was also looking at acquiring a 10,000 tonnes per annum capacity steel wire rope manufacturing facility in the US at an estimated investment of $5 million. A firm decision in this regard would be taken within three months. The company's export revenue during April-June 2005 went up to Rs 86.10 crore from Rs 73.50 crore during the corresponding period of last fiscal.

During the first quarter of the current fiscal, revenue from the company's core business of steel and wire and wire ropes went up to Rs 341.90 crore from Rs 314.39 crore during the corresponding period of last year.

During the full year ended March 31, 2005, Usha Martin Ltd clocked a total income of Rs 1,190.85 crore compared with Rs 979.07 crore the previous fiscal.

The net profit in 2004-05 stood at Rs 40.87 crore, up from Rs 15.52 crore in 2003-04. A 30 per cent dividend i.e. Rs 1.50 on each equity share of the face value of Rs 5, was declared for the last fiscal.

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