Gujarat NRE swings to profit in Q4; Net at Rs 5.15 cr

Gujarat NRE Coke, a leading private coke producing firm, returned to profitability in the fourth quarter ended March 31, 2013, with a net profit of Rs 5.15 crore.

The Kolkata-based company had reported a net loss of Rs 45.51 crore during the corresponding period a year ago.

The company managed to reduce its costs significantly during the quarter even though its net sales declined marginally by 0.74% at Rs 327.98 crore, it said in a filing to the BSE.

Its total expenses constituted 71.60% of its net sales at Rs 255.44 crore during the quarter. During January-March quarter of FY'12, company's expenses amounted to 90.36% of its net sales.

A sharp decrease in expenses during the last quarter also negated the impact of over 37% rise in Gujarat NRE's interest outgo at Rs 63.13 crore. The company also incurred an exceptional loss of Rs 9.63 crore due to forex losses.

For the full year ended March 31, 2013, its net profit rose by over 10 times to Rs 30.97 crore vis-a-vis a net profit of Rs 3.09 crore of FY'12. Its net sales, at Rs 1,713.04 crore, were up nearly 25% in the last fiscal.

In a separate statement, the company said that it is on the road to recovery and its performance has been impressive on an annual basis.

"The year 2012-13 has been a challenging one. The Indian steel industry had passed through one if its tough times due to low demand...I am happy that the Gujarat NRE stood strong in this test of times and has been able to record a decent result," company chairman Arun Kumar Jagatramka said.

He further said that Gujarat NRE's mine development in Australia is progressing as per the plan and the company is hopeful of increased coking coal production from the mines.

He added that SAIL has been the major customer of his firm last year and Gujarat NRE received continuous and steady orders from the state owned steel major.

Shares of the company closed today at Rs 17.20 apiece on the BSE, up 0.88% from the previous close.