Electrosteel Steels jumps after board approves annual business plan

Electrosteel Steels rose 7.37% to Rs 3.64 at 13:40 IST on BSE after the company said its board has approved annual business plan for the financial year ending March 2017 with estimated annual turnover of around Rs 4500 crore.

The announcement was made after market hours on Wednesday, 13 April 2016.

Meanwhile, the BSE Sensex was up 185.61 points, or 0.72%, to 25,812.36 .

On BSE, so far 9.61 lakh shares were traded in the counter, compared with an average volume of 2.98 lakh shares in the past one quarter. The stock hit a high of Rs 4.06 and a low of Rs 3.46 so far during the day. The stock hit a 52-week high of Rs 4.80 on 11 May 2015. The stock hit a record low of Rs 2.05 on 8 September 2015. The stock had underperformed the market over the past one month till 13 April 2016, rising 2.42% compared with 3.68% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 6.09% as against Sensex's 3.11% rise.

The small-cap company has an equity capital of Rs 2409.24 crore. Face value per share is Rs 10.

Electrosteel Steels said that its board has approved annual business plan for the financial year 2016-2017 with estimated/expected annual turnover of around Rs 4500 crore, which in terms of goods sold in tonnes compared with financial year ended March 2016 (FY 2016) is expected to be more than 25%. The company at present is producing pig iron, billets, TMT bars, wire rod and ductile iron pipes. During FY 2016, the overall sales of the company compared with FY 2015 in terms products sold in tonnes increased by more than 78%.

Further, the board also approved allotment of equity shares of the company on preferential basis at face value of Rs 10 each for consideration other than cash on private placement basis to Shandong Province Metallurgical Engineering Co, People Republic of China against amount payable but not due to the company on account of retention, pending successful completion and/or performance guarantee test of various capital equipment supplied for the company's plant, aggregating to $22.68 million not exceeding Rs 150 crore, subject to approval of the lenders and shareholders of the company and such other approvals, permissions as may be required in connection thereof.

Electrosteel Steels reported net loss of Rs 221.63 crore in Q3 December 2015 as against net loss of Rs 148.65 crore in Q3 December 2014. Net sales rose 18.76% to Rs 591.48 crore in Q3 December 2015 over Q3 December 2014.

Electrosteel Steels makes products like pig iron, billets, TMT bars, wire rods and ductile iron pipes.

Powered by Capital Market - Live News