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Southern Ispat and Energy, engaged in manufacturing of steel products, has reported that its net profit had doubled to Rs 9 crore in the quarter ended December, against Rs 4 crore logged in the same period last year.
The company has posted net sales of Rs 198 crore (Rs 105 crore) in the quarter under review.
Mr Vivek Agarwal, CMD, Southern Ispat and Energy, said the company's profitability improved on completion of its expansion projects in last three months.
“We were making only mild steel. Now we have upgraded into alloy steel in which we are making EN8 grades, which offers better realisations. This is one of the reasons for increase in profits. Further, we are looking to expand again and bring in more value added products,” he said.
The company has also initiated the process of acquiring iron ore mines in Chattarpur district of Madhya Pradesh having an estimated reserve of 230 MWT (molecular weight tonnes) covering 150 hectors.
The company is also setting up captive power plants to generate electricity from wind, coal and waste gases.
Southern Ispat would soon generate 30 MW and produce value-added products, he said.
With the rise in steel demand, the company has set up a sponge iron manufacturing unit in Kerala.
It has annual production capacity of about 33,000 tonnes integrated steel and has drawn plans to double it.
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