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Buoyed by a volume increase in tractors, iron castings manufacturer Nelcast has reported a four-fold increase in third quarter net profit to Rs 13.64 crore, from Rs 3.13 crore the same period last year. Net sales for the quarter rose 34 per cent to Rs 176 crore.
“Bulk of the growth has been from the domestic market — the driver of this growth has been increase in volumes in the tractor segment. Heavy commercial vehicles growth has also been good. With increase in volumes, rejection rates have come down, leading to internal resource optimisation. Exports this quarter have been negligible,” said Mr S.K. Sivakumar, Chief Financial Officer.
The company — which primarily supplies casting components to automobiles, tractors and the railways — is developing a range of castings for use in construction and earth-moving equipment.
Nelcast clocked sales of Rs 507 crore in 2010-2011, registering a year-on-year growth of 59 per cent. It recently announced a stock split to raise liquidity.
The company share price was down 2.93 per cent on Monday at Rs 29.80 on the BSE.
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