Bhushan Steel Q1 net profit down marginally to Rs 206 cr

Bhushan Steel today reported a marginal decline of 1.90% in net profit to Rs 205.97 crore for the quarter ended June 30, 2012, largely due to increase in interest payments.

The Delhi-based steel major had posted a net profit of Rs 209.96 crore during the corresponding quarter of the last fiscal.

Net sales of the company rose by nearly 27% to Rs 2,747.34 crore during the quarter against Rs 2,165.85 crore in the April-June period of 2011-12, it said in a filing to the BSE.

Besides, the company's interest payments increased by over 75% to Rs 377.80 crore during the quarter, impacting its profitability.

In a separate filing, the company said its board has recommended a dividend of Rs 0.50 per share for the ordinary shareholders for the last fiscal, while a dividend of Rs 10 per share has been recommended for the shareholders having preferential shares of the company.

It added that the company has commissioned a new cold rolling unit in the last quarter, although it did not give further details.

Shares of the company today closed at Rs 472.50 apiece on the BSE, up 0.28% from the previous close.