Bhushan Steel today reported 20 per cent decline in net profit at Rs 221.20 crore for the quarter ended December 31, largely due to subdued sales growth and rise in interest payments.
The city-based firm had reported a net profit of Rs 276.62 crore during the corresponding quarter of the previous fiscal.
Net sales of the company was up marginally by 5 per cent to Rs 2,529.07 crore during the quarter vis-a-vis Rs 2,407.06 crore of the October-December quarter of the previous fiscal, it said in a filing to the National Stock Exchange (NSE).
Besides, its interest costs increased by nearly 28 per cent to Rs 293 crore, while company's expenditure was up 6.54 per cent to Rs 1,954.68 crore.
In its filing, the company also said its Board has approved capacity expansion projects worth Rs 7,560 crore in Odisha.
"The Board has approved setting up a 0.35 million tonnes per annum (MTPA) capacity cold rolling cum electrical steel (CRNGO) complex at estimated project cost of Rs 1,560 crore and reaffirming the proposal to set up a 1.8 MTPA capacity pickling Line coupled with Tandem Cold Rolling Mill (PLTC M) at estimated project cost of Rs 6,000 crore, at Meramandali plant in Odisha," it said.
With installation of these facilities, the company's total downstream production capacity is proposed to increase to about 4 MTPA by 2016-17, it added.
Moreover, the company is also launching its rights issue, to raise Rs 475 crore, on January 22. The issue will close on February 5.