Usha Martin 2009-2010 Q1 Net Profit Dips By 50%
Usha Martin Limited, the speciality wire rope and steel manufacturer, has reported a net profit of Rs.32.03 crore for Q1 of 2009-2010 which is almost 50% of the Rs.65.08 crore for the corresponding period last year.
"On consolidated basis, profit is down by almost 60% as our wire rod mill remained shut down for 24 days for increasing capacity from 300,000 tonnes to 400,000 tonnes, which has been completed successfully. There was a loss of production of 22,000 tonnes this quarter," managing director Rajeev Jhawar told reporters during the company’s AGM.
The company has plans for improving its margins at the earnings before interest depreciation tax and amortisation level at 22% for 2009-10.
The company wants to increase steel manufacturing capacity to 900,000 tonnes by the end of the current fiscal.
Jhawar said that with the commissioning of all the projects the cost of production would come down by Rs.4,000 per tonne. The present cost of production is Rs.21,000 per tonne.