Usha Martin Ltd net Drops 60% in March Quarter
by wireworld on 05/13/2012 - 06:13 pm
Tag: Press Releases
Steel-wire maker Usha Martin Ltd reported nearly 60 per cent drop in net profit to Rs 15 crore in the January-March quarter. The lower profit came on the back of 11 per cent sales growth to Rs 954 crore, during the period.
“We could not pass on the impact of input cost increase of about Rs 100 crore to our customers. This has affected our margins,” Mr Rajeev Jhawar, managing director, Usha Martin said. Net profit for the year ended March 31, 2012 dipped by almost 97 per cent to Rs 4 crore (Rs 137 crore). Margins could be under pressure in 2012-13 as well, he said as weak demand makes price hikes unsustainable.
Usha Siam Steel Industries
Usha Siam, a subsidiary of Usha Martin in Thailand, has received an interim claim settlement of about Rs 20 crore for inundation and stoppage of production at the wire rope unit near Bangkok on account of devastating floods in Thailand.
The unit resumed operations from January 2012 and has achieved about 35 per cent capacity utilisation by end March 2012. The final insurance claim is also in process, he said. The Thai unit has a capacity of 44,000 tonnes a year and employs 480 workers.