Electrosteel Castings, Electrosteel Steels edge lower

Electrosteel Castings and Electrosteel Steels slumped 7.49% to 11.44% at 10:29 IST on BSE on buzz that Central Bureau of Investigation registered a case against both firms.

Electrosteel Castings (down 11.44% at Rs 16.65) and Electrosteel Steels (down 7.49% at Rs 4.32) edged lower.

Meanwhile, the S&P BSE Sensex was up 56.16 points or 0.21% at 27,428.

According to reports, the Central Bureau of Investigation (CBI) registered a case against Electrosteel Castings and Electrosteel Steels for alleged criminal conspiracy and cheating in acquiring a coal block mine in Jharkhand. The case pertains to the Parbatpur block in Bokaro, Jharkhand, which was allocated to Electrosteel Castings for its pig iron facilities in Kolkata and Andhra Pradesh, as per reports.

Electrosteel Steels has an integrated steel plant at Siyaljori village in Bokaro district. Electrosteel Castings is the owner and also the largest shareholder, with 45.23% shareholding in Electrosteel Steels as of 30 September 2014.

Electrosteel Steels reported a net loss of Rs 98.71 crore in Q2 September 2014, higher than net loss of Rs 53.15 crore in Q2 September 2013. Net sales rose 160.2% to Rs 432.34 crore in Q2 September 2014 over Q2 September 2013.

Electrosteel Castings' net profit fell 34.4% to Rs 12.78 crore on 6.4% decline in net sales to Rs 509.94 crore in Q2 September 2014 over Q2 September 2013.

Electrosteel Castings is a leading pipeline solution provider. The company has a strong brand presence around the globe.

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