Diamond Power Q1 net dips by 5%

Vadodara-based Diamond Power Infrastructure Limited (DPIL), an integrated player in the power equipment and EPC segment, posted a decline in its net profit by 5 per cent at Rs 29.63 crore for first quarter of the fiscal 2011-12 as compared to Rs 31.22 crore during the same period previous year. The net sales during the period also dipped marginally by 3 per cent to Rs 369.84 crore from Rs 381.61 crore in the corresponding period last fiscal.

“The company has been focussing on strengthening its bottom-line by maintaining consistent margins. The current industry environment offers diverse challenges in terms of input cost, rising cost of finance and slower demand. However, we have not only initiated steps to improve our realisations by focusing on integrated services and value added products and at the same time, we have taken concrete measures to optimise our cost structures across divisions. We are confident, that the result of our initiatives will be visible in the forthcoming quarters,” said Amit Bhatnagar, MD, DPIL.

The earnings before interest, taxes, depreciation and amortization (EBIDTA) stood at Rs 50.55 crore with EBIDTA margin of 13.6 per cent. As a percentage of total revenues, EPC division stood at 24 per cent, cables division at 41 per cent, conductors division at 22 per cent and transformers division at 13 per cent. The order book position for the company as on June 30, 2011 stood at Rs 1616.57 crore.

Among some of the significant developments by the company include an MoU with Orissa-based UtkalGalvanizers Ltd whereby it acquired a substantial stake in the company. DPIL has acquired about 100 acres of land near Vadodara for its future expansion activities and also commissioned its extra high voltage (EHV) cable plant in Vadodara.