Steelcast net up 138% on strong mining demand

Steel castings maker, Steelcast Limited has reported net profit of Rs 4.14 crore for the fourth quarter ended March 31, 2012, showing a jump of 137.93 per cent against Rs 1.74 crore in the corresponding period previous year. The company attributed the sharp growth in profits to strong demand from the mining industry.

Steelcast's net sales during the quarter stood at Rs 71.27 crore, higher by 86.20 per cent compared to Rs 38.27 crore in the same quarter of previous fiscal, the company informed in a statement issued on Wednesday. For the financial year ended March, 2012, the company's net profits jumped by 226.62 per cent to Rs 14.11 crore as against Rs 4.32 crore in the previous fiscal. Total income for the fiscal 2012 stood at Rs 237.97 crore showing a growth of 77.86 per cent over Rs 133.79 crore reported in the previous fiscal. Steelcast declared 1:1 bonus share for the year 2011-12, also a dividend of 60 per cent or Rs 6 per share, including interim dividend of 20 per cent or Rs 2 per share was declared for the fiscal.

"The company has posted high growth in revenues as well as in profits due to strong demand in India and globally for steel castings from the mining industry. Exports, largely to the US and Germany, constituted nearly 45 per cent of sales in 2011-12," said Chetan Tamboli, CMD of the company. At the board of directors meeting held on June 5 the board approved sub-division of the Rs 10 share to Rs 5 per share.