Monnet Ispat and Energy Ltd reported a 17 per cent rise in net profit for the September quarter, aided by robust sales of sponge iron and improved realisations.
Monnet reported a net profit of Rs 76.94 crore on revenue of Rs 458 crore for quarter-ended September, 2011 as against a net of Rs 65.60 crore on revenue of Rs 360 crore in corresponding previous quarter.
Post-results, the Monnet scrip touched an intra-day high of Rs 454 before closing at Rs 435.55 on the BSE on Tuesday.
Sales
Sales of sponge iron improved 36 per cent to Rs 381.84 crore (Rs 279.02 crore) during the quarter. However, the power sales during the quarter declined to Rs 70.59 crore (Rs 91.18 crore).
“The overall industry and business environment is challenging. However, we are focusing on better productivity and rationalisation of costs as key inputs for managing our profitability,” said Mr Sandeep Jajodia, Executive Vice-Chairman and Managing Director, MIEL, in a statement.
The increase in raw material costs, mainly coal, and a decline in realisations from the power business impacted the profit margins. The operating profit margins declined to 25.89 per cent as against 28.27 per cent in corresponding last quarter.