core sector communique

Usha Martin’s consolidated net profit at Rs 32.53 Crores 

 

 

 

Kolkata, October 28^th 2009:  Usha Martin Limited, leading producer of speciality steel and one of the largest wire rope manufacturers globally, posted, on a consolidated basis, net sales of Rs.669.98 crores during the second quarter of 2009-10, a decline of 17% from a level of Rs.806.36 crores during corresponding period of the previous year.  Decline was both in domestic and export sales.   Profit before tax declined to Rs.56.13 crores compared with Rs.78.80 crores, a decline of 28.8%.   Overseas subsidiaries improved their performance modestly despite difficult market conditions. 

 

The slow and uncertain process of global economic recovery and volatility in raw material prices continues to adversely affect the steel and value added product volume and margins.   Standalone sales realizations were down by 26% on overall basis.  But the value added product share remained intact at 58%.

 

However, given the robust business model of the Company and the commissioning of its world class Rs.2100 crores investment in new facilities, the Company is geared for rapid growth.

 

During the first six month of the financial year 2009-10, the consolidated net sales (net of inter segment adjustment) stood at Rs. 1278.22 crores, a decline of 15.1%, from a level of Rs. 1505.05 crores during corresponding period of the previous year.  Profit before tax declined to Rs.106.37 crores compared with Rs.179.63 crores, a decline of 40.8%.

 

During the quarter II of the financial year 2009-10, the standalone net sales (net of inter segment adjustment) stood at Rs.482.25 crores, a decline of 18.8% from a level of Rs. 593.85 crores, during corresponding period of the previous year.  Profit before tax declined to Rs.32.22 crores compared with Rs.59.02 crores, a decline of 45.4%.

 

During the first six month of the financial year 2009-10, the standalone net sales (net of inter segment adjustment) stood at Rs. 887.38 crores, a decline of 18.2% from a level of Rs. 1084.25 crores, during corresponding period of the previous year.  Profit before tax declined to Rs.57.97 crores compared with Rs.144.24 crores, a decline of 59.8%.

 

The tax expense during the quarter and six months is higher solely on account of deferred tax liability on account of higher tax depreciation.   Current tax expense during the second quarter and first six months of 2009-10 are significantly lower at 7.05 crores [Rs.32.77 crores last year] and Rs.9.96 crores [Rs.47.02 crores last year], respectively.

 

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.