Electrosteel Castings 2007-08 turnover up by 18.5% YoY
June, 26th 2008
Electrosteel Castings Limited has posted an 18.5% YoY increase in its turnover to INR 1,331 crore for 2007-08 fiscal from INR 1,123 crore in 2006-07 fiscal. Profits were impacted by increase in iron ore and coal prices internationally. Consequently, profit before tax and exceptional item for 2007-08 fiscal has declined by 30% YoY to INR 110.65 crore from INR 158.42 crore in 2006-07 fiscal.
For the January to March 2008 quarter, it recorded turnover of INR 415.29 crore up by 33.4% YoY as compared to INR 311.11 crore during January to March 2007 quarter. Profit before tax was posted at INR 28.94 crore as against INR 36.57 crore. The profit after tax was artificially reduced by INR 60.20 crore to INR 20.60 due to a provision necessitated by the announcement made by the Institute of Chartered Accountants of India on account of mark to market losses on foreign exchange derivative contracts.
The production of DI pipes at 214,956 tonnes declined by 6.6% YoY primarily due to plant shutdown necessitated by unseasoned flooding and relining of blast furnace. This was partially offset by higher production of CI pipes to the extent of 20% and a rise of 35% in production of DI fittings to 4,654 tonnes.
The industry faced unprecedented increase in iron ore and coal or coke prices in addition to the significant increases in other raw material prices. During the latter half of the year, it was able to increase product prices to partially compensate the increase in raw material prices, resulting in an increase in realization. Adverse movements in the international FOREX markets affected the companys foreign exchange exposures.