Bhushan Steel up 64 per cent

Bhushan Steel surged 64.4 per cent this week to close at Rs 682.90 on better-than -expected results for the quarter ended March 2009.

The trading volume on BSE and NSE rose sharply from 0.46 million shares in three-day trading of the previous week to 13.1 million shares during the week ended May 8, 2009.

The company reported a marginal decline of 8 per cent in net sales in the fourth quarter ended March 2009 as the company did extremely well by posting a 36 per cent growth in sales volumes of long products.

The volumes in the flat product category were lower by 5.5 per cent due to sluggish demand from the auto sector.

Although steel prices have reduced by more than half over the past nine months, raw material prices have not followed suit. Consequently, the company witnessed a 15 per cent decline in operating margins per tonne. As a result, net profit declined by 21 per cent.

The company’s expansion plans are on schedule and expected to get fully commissioned by the end of September 2009.

The company has progressively commissioned its Orissa facilities in FY09, but the recent downturn faced by the steel industry has caused sales volumes to decline 3.6 per cent during the year ended March 2009.