Bellary Steels And Alloys

Sales turnover during the year to March moved up to Rs 188.78 crore from Rs 123.75 crore registering a growth of 52.5 per cent over the corresponding period of the previous year. With an improvement in price realisation, the gross profits moved up by 91 per cent to Rs 27.20 crore and net profit by 127.5 per cent to Rs 22.16 crore. As a result, gross profit margins increased to 14.4 per cent from 11.50 per cent and net profit margins to 11.74 per cent from 7.87 per cent. The company's sponge iron division produced 52,845 mt in 1995-96 as against 45,797 mt in the previous year. Production of finished steel was higher at 65,575 mt as against 42,444 mt. The company foresees fierce competition for mild steel products in the coming years and is shifting the product mix from mild steel to value-added steel. With automobiles and engineering sector expected to fare well in the current year, the company hopes to increase profit margins. After the setting up of a coal-based sponge iron plant, the company now plans to set up a integrated steel plant, with an initial capacity of 50,000 tonnes, for long products at Bellary through the blast furnace, basic oxygen furnace, continuous casting and rolling mill route.

 

Market price: Rs 12.10,EPS: Rs 9.64, P/E: 1.25