Usha Martin consolidated Q4 net dips 43%

Wire rope making firm Usha Martin today posted 42.9 per cent dip in its consolidated net profit in the fourth quarter of 2008-09 at Rs 28.83 crore on increased foreign exchange losses and lower denmand due to the global downturn.

The company had a net profit of Rs 50.52 crore in the Q4 of FY08.

Net sales of the company rose 5.1 per cent at Rs 706.47 crore during the quarter from Rs 672.50 crore in the same corresponding period previous fiscal.

Consolidated net profit for the year 2008-09 increased 5.7 per cent at Rs 185.34 crore. It consolidated turnover during 2008-09 increased 24.5 per cent at Rs 3,146.79 crore, while net sales grew 27.8 per cent at Rs 2,949.85 crore.

The results have been adversely hit due to foreign exchange loss of Rs 73 crore due to depreciation of the rupee Usha Martin Vice-Chairman Prashant Jhawar told reporters here today.

He said the company had decided to book this loss as a notional charge on profits in the profit and loss account.

Moreover, the global recession had also resulted in sharp fall in demand and prices which hit the fourth quarter results, he added.

He added that Usha Martin had also won the case of fighting anti-dumping duty in the EU.