Mahamaya Steel's Q1 net up 44%

Raipur-based steel producer Mahamaya Steel Industries reported 44.22 per cent rise in net profit for the quarter ended on June 30, 2016, improvement in margins due to a sharp recovery in prices.

The manufacture of steel structures, has reported net profit after of Rs 0.88 crore for the quarter ended on June 2016 compared to Rs 0.61 crore in the corresponding quarter last year.

Higher capacity utilisation, better product realisation with lower raw material prices aided the company to post better performance for June 2016 quarter.

The company reported a loss of Rs 5.05 crore in the quarter ended on March 2016 following adverse condition in the market then.

Meanwhile, net sales of the company for the quarter ended June 2016 touched Rs 67.42 crore compared to Rs 81.18 in the corresponding quarter ended on June 2015. During the quarter, the company produced 25,939 tonnes of blooms and billets. Likewise, productions of rolling mill stood at 23,348 tonnes.

During the quarter under preview, the average market price of structures was Rs 26,311 per tonne against Rs 25,800 per tonne in March 2016 quarter. On the other hand average market price of billets and blooms was Rs 21,845 per tonne against Rs 21,875 per tonne during March 2016.

During the quarter ended on June 30, 2016, the company has booked new orders worth Rs 70.60 crore.

Commenting on company's performance, Rajesh Agrawal, managing director, said: "After a long dull phase in business, the company has started witnessing a change in the business sentiments. If the current trend continues we hope to post better performance in the coming quarters. Recent policy decisions taken by the government have aided a recovery in our performance."