Monnet Ispat and Energy Ltd (MIEL) reported a 4 per cent rise in December quarter profits on higher steel sales.
Net profit for the quarter grew to Rs 73 crore on revenues of Rs 481 crore as against a net of Rs 70 crore on income of Rs 347 crore in corresponding previous quarter.
However, the profit growth was weighed down by high input and interest costs.
The interest outgo was 2.5 times more at Rs 18.83 crore over the corresponding last quarter's Rs 5.73 crore.
Operating margins declined to 25 per cent from 30 per cent on account of steep rise in iron ore prices, the company said.
Iron ore prices were up 35 per cent during the quarter, while the corresponding rise in sponge iron prices was only 18 per cent. The Monnet Ispat scrip gained Rs 3 to close at Rs 499 on Tuesday.
The steel business contributed Rs 414.26 crore to the topline, while the rest came from the power business.
“The steel industry is passing through very challenging times on account of inadequate availability of key raw materials like coal and iron ore accompanied by pricing pressure. Monnet is trying to negotiate its way by managing raw material balances on most cost competitive terms,” Mr Sandeep Jajodia, Executive Vice-Chairman and Managing Director, MIEL, said in a statement.
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