Mideast Steel net profit jumps 55.5%

Mideast Integrated Steel Ltd (MISL), the flagship company of Mesco Steel has posted a net profit of Rs 140.43 crore in 2012-13, compared with Rs 90.27 crore made in the year ago period helped by better sales realisation from iron ore sales from its captive mines.

Though the company is known as a pig iron producer, profit from the secondary steel business was rather muted due to weak demand, said company officials.

"Out of Rs 140 crore profit, iron ore sales contributed the most. Profitability from pig iron business was rather lower," said Rita Singh, managing director of the company.

MISL has been allotted Malangtoli iron ore mine with 90 million tonne reserves.

The company's topline grew by over 33 per cent to Rs 728.78 crore in the last fiscal, and helped earnings per share to zoom by 56 per cent to Rs 10.19. The board announced 7.5 per cent dividend per share for 2012-13.

The company, which has been in expansion mode since last year to take advantage of easy financing norms for steel making machines because of low demand, said, it will continue with its expansion project this year.

"This is a good time to be in steel business as financing for steel making machines has become easier. We will commission second sinter plant and a second blast furnace by the end of August," said Singh. MISL has plans to raise the existing one million tonne pig iron making capacity to three million tonne.