Usha Martin's Q-III consolidated net profit at Rs 39.08 Crores marginally down by 5%

 

Kolkata, January 29, 2009: Usha Martin Limited, leading producer of speciality steel and one of the largest wire rope manufacturers globally, has posted satisfactory performance considering the current market scenario. The key highlights of consolidated financials for the quarter ended 31st December, 2008, were:

 

· Net sales grew by 33.0% to Rs738.33 crores

· PBT grew by 3.7% to Rs.56.79 crores

· PAT declined by 5.2% to Rs.39.08 crores

 

During the nine months of the financial year 2008-09, the consolidated Profit before tax rose to Rs.236.41 crores from Rs.172.33 crores (an increase of 25.3%)and Profit after tax at Rs.156.51 crores from Rs.124.86 crores (an increase of 25.3%). The net sales [net of inter segment adjustment] rose to Rs.2243.39 crores from Rs.1636.27 crores, registering a growth of 37.1%.

 

During the quarter III of the financial year 2008-09, the standalone profit before tax stood at Rs.38.70 crores from Rs.42.02 crores (a decrease of 7.9%) and profit after tax stood at Rs. 26.74 crores from Rs.32.45 crores (a decrease of 17.6%). The net sales (net of inter segment adjustment) rose to Rs.512.93 crores from Rs. 402.65 crores, registering a growth of 27.4%.

 

During the nine months of the financial year 2008-09, the standalone Profit before tax rose to Rs.182.95 crores from Rs.137.77 crores (an increase of 32.8%)and Profit after tax to Rs.125.29 crores from Rs.100.53 crores (an increase of 24.6%). The net sales [net of inter segment adjustment] rose to Rs.1597.18 crores from Rs.1162.83 crores, registering a growth of 37.4%.

 

The Company has provided foreign exchange loss of Rs.11.50 crores [net] during the quarter and Rs.67.35 crores [net] during the nine months period on account of valuation of foreign currency loans and trade exposures, as per AS 11 as against gain of Rs.6.80 crores and Rs.30.75 crores in the corresponding periods last year.

 

The other key highlights of the quarter under review:

a) All the subsidiaries continued to perform well.

b) Global Wire Ropes production grew by 4% compared to corresponding period of previous year.

c) Operational PBDIT margin (excluding foreign exchange loss) at 20.0% (Consolidated)

d) Slow down in auto sector has affected the steel volume and margins.

e) Value added product share at 58 % of steel produced.

f) Coal mine integration is in progress.

Usha Martin has manufacturing facilities at Ranchi, Jamshedpur, Hoshiarpur, UK, Thailand, UAE and USA. It has created a worldwide distribution, service and marketing network spread across the US, UK, Europe, Africa, the Middle East, South East Asia and Australia.