Ispat Inds Posts Rs 321 Cr Loss In & #39;00-01

Ispat Industries has reported a net loss of Rs 312.46 crore for 2000-01 against a net profit of Rs 3.67 crore in 1999-2000, primarily on account of a 245 per cent jump in interest costs burden and a threefold increase in depreciation and deferred revenue expenditure.

Total interest outgo shot up to Rs 345 crore compared with Rs 100.13 crore in the previous year. Depreciation and deferred revenue expenditure was Rs 198.84 crore against Rs 66 crore in the previous year.

The turnover for the year was up by 57 per cent to Rs 2,238.89 crore against Rs 1425.48 crore in the previous year. Power and fuel cost increased around three fold to Rs 458.74 crore against Rs 164.28 crore in the previous year.

The other expenditures of the company was up by 200 per cent at Rs 424.27 crore against Rs 141.01 crores in the previous year. The staff cost during the year almost doubled to Rs 43.99 crore from Rs 21.79 crore.

Other income stood at Rs 25.18 crore against Rs 11.65 crore in the previous year. The excise duty paid by the company during the year was Rs 269.9 crore, up 127 per cent compared with Rs 118.83 crore in the previous year.

Ispat Industries is implementing a financial restructuring programme and expects completing the same in the current financial year.

According to a release issued by the company, it is taking steps to reduce its cost of production in all its units specially in the hot-rolled coils segment by using more hot metal in the charge mix which will reduce the energy consumption substantially.