Thursday, June 07, 2012: 12:45:32 PM

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Phenomenal rise in Steelcast’s net profit in FY12

Steelcast recorded a marked rise in its net profit figures for 2011-12 from that of the previous fiscal

Gujarat-based Steelcast Limited has reported a 226.62% jump in net profit to Rs 14.11 crore for the year ended March 31, 2012. This is a marked rise against Rs 4.32 crore of the previous fiscal. Total income for FY12 estimated at Rs 237.97 crore was higher by 77.86% over previous fiscal’s turnover of Rs 133.79 crore.

 
Steelcast Limited is counted among India’s leading steel castings manufacturing companies in the earthmoving equipment sector and strong demand from user industries in India and globally has put the company on a high growth trajectory in recent days. According to Chetan Tamboli, CMD of Steelcast Ltd, “The company has posted high growth in revenues as well as in profits due to strong demand in India and globally for steel castings from the mining industry. Exports, largely to the US and Germany, constituted nearly 45% of sales in 2011-12.”
 
The company’s product range is castings in carbon steel and low alloy steel and its clientele boasts of names like Caterpillar, Komatsu, Thyssen Krupp, JCB, Tatas, L&T, Essar and Bharat Earth Movers Limited. Steelcast’s manufacturing capacity is of 24,000 tonnes per annum and further expansion is planned in the coming few years. The company caters to earthmoving equipment manufacturers and mining, mineral processing equipment manufacturers, among others.
 
Further developments
 
At the recent board of directors meeting, the board has approved sub-division of the Rs 10 share to Rs 5 per share and the company has also declared 1:1 bonus share for the same period. A dividend of 60% (Rs 6 per share) including Interim Dividend of 20% (Rs 2 per share) was declared for the year 2011-12. The board has also given the go-ahead for the company to begin the process to get its shares listed on the National Stock Exchange (NSE) during this fiscal.
 
For the fourth quarter (Q4), Steelcast has reported a net profit of Rs 4.14 crore, which represents a jump of 137.93% over Rs 1.74 crore posted in Q4 of the previous financial year. Net sales in Q4 of FY12 stood at Rs 71.27 crore, which is higher by 86.20% over Rs 38.27 crore in the same quarter of previous fiscal.
 
Priyanka Roy Chowdhury
 

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