Monnet Q1 net profit down 23% at Rs 52 crore

Company reported stand alone net profit of Rs 68 cr in the corresponding quarter of last fiscal

Monnet Ispat & Energy today reported 23% decline in stand alone net profit at Rs 52.5 crore for the quarter ended June 30 due to a drop in sales.

The company had reported a stand alone net profit of Rs 68.50 crore in the corresponding quarter of last fiscal, the company said in a filing to BSE.

Net sales of the company were down by 9.7% to Rs 469.8 crore from Rs 520.6 crore is the same period of the previous fiscal, the company said.

The total expenses of the company dipped to Rs 391.8 crore from Rs 412 crore in the same quarter of the last financial year.

"The company does not have any exceptional or extraordinary item to report," the domestic steel firm said.

Monnet Ispat & Energy had earlier raised Rs 175 crore by issuing shares on preferential basis.

Monnet Ispat and Energy is actively considering scrapping its proposed 1.5 million tonnes plant in Jharkhand.

The sponge iron and power producer has proposed 1.5 million tonnes per annum (MTPA) greenfield steel plant in Jharkhand. It is now considering withdrawing the plans for want of raw material, water and land.

The shares of the company closed at Rs 102.75 a piece on BSE, up 1.88% from the previous close.