Tuesday, May 12, 2009

Usha Martin’s consolidated net profit at Rs 185.34 Crores up by 5.7%


Kolkata, May 12, 2009: Usha Martin Limited, leading producer of speciality steel and one of the largest wire rope manufacturers globally, has posted satisfactory performance in the context of the current market scenario. During the year ended 31st March, 2009, the key highlights of the consolidated financials were:

* Turnover grew by 24.5% to Rs.3146.79 crores

* Net Sales grew by 27.8% to Rs.2949.85 crores

* PBT grew by 13.7% to Rs.280.59 crores

* PAT grew by 5.7% to Rs.185.34 crores

The results were adversely impacted by Rs.10.96 crores for the quarter and Rs.78.32 crores for year ended 31st March, 2009 due to revaluation of long term foreign currency loans on account of rapid depreciation of Rupee against US Dollar following the conservative accounting approach by charging to profit & loss account as per Accounting Standard 11 of the Companies Act, 1956. Company could have capitalized foreign currency translation losses as per amendment issued by the Ministry of Corporate Affairs vide notification dated 31st March, 2009 to the extent of Rs.73.00 crores.

During the fourth quarter of the financial year 2008-09, the consolidated Profit before tax at Rs.43.42 crores from Rs.74.70 crores (a decrease of 41.9%) and Profit after tax at Rs.28.83 crores from Rs.50.52 crores (a decrease of 42.9%). The net sales [net of inter segment adjustment] rose to Rs.706.47 crores from Rs.672.50 crores, registering a growth of 5.1%.

During the fourth quarter of the financial year 2008-09, the standalone profit before tax decline to Rs.31.09 crores from Rs.62.94 crores (a decrease of 50.6%) and profit after tax to Rs. 21.27 crores from Rs.44.31 crores (a decrease of 52.0%). The net sales (net of inter segment adjustment) rose to Rs.530.05 crores from Rs. 493.07 crores, registering a growth of 7.5%.

In addition to the impact of the global recession and sharp decline in the demand and prices of the products, the results of fourth quarter was adversely impacted on account of full absorption of the high cost inventory.

During the year ended 31st March’2009, the standalone Profit before tax rose to Rs.214.04 crores from Rs. 200.72crores (an increase of 6.6%) and Profit after tax rose to Rs.146.56 crores from Rs.144.84 crores (an increase of 1.2%). The net sales [net of inter segment adjustment] rose to Rs.2127.23 crores from Rs.1655.90 crores, registering a growth of 28.5%.

The other highlights are :

a) All the subsidiaries including UM Cables performed exceedingly well.

b) Slow down in the global economy has adversely affected the steel and value added product volume and margins

c) Value added product share at 56% of steel produced.

The Board of Directors have recommended dividend @ Re.1 per share [100%] on the face value of Re.1/- per share.

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. 


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