Varun Ind Q1 net surges 59% at Rs 18 cr

Varun Industries, manufacturer of stainless steel houseware and steelware products, today reported a growth of 59.43% in its standalone net profit at Rs 18.51 crore for the quarter ended June 30.

The company had reported a net profit of Rs 11.61 crore during the corresponding period of last fiscal.

Net sales of the company during the quarter under review stood at Rs 923.67 crore, up 127.28%, as compared to Rs 406.40 crore of the April-June quarter of 2010-11, it said in a filing to the Bombay Stock Exchange.

The company reported a revenue of Rs 919.90 crore from its merchandise sale of stainless steel products during the quarter vis-a-vis Rs 402.89 crore of Q1 of FY11, the filing added.

Varun Industries had recently said that it has discovered huge reserves of heavy minerals, including rare earth elements, in Madagascar and will produce 5,00,000 tonnes of heavy mineral concentrates from there per year.

The company, which has also diversified into oil and gas, wind power among others, plans to build a heavy minerals processing plant in Madagascar at an estimated cost of Rs 300 crore and will sell the entire output to a public sector company under Department of Atomic Energy.

Scrips of the company today closed at Rs 249.25 apiece on the Bombay Stock Exchange, up 0.48% from the previous close.