Hit by a 23 per cent decline in sales, Uttam Galva Steels has reported a 29.52 per cent fall in standalone net profit at Rs 28.19 crore for the fourth quarter ended March31, 2013.
The company, in which the world’s largest steel maker ArcelorMittal holds 29.05 per cent stake, had reported a net profit of Rs 40 crore in the same quarter of 2011-12. It, however, did not publish the consolidated results for the quarter.
Net sales were down 23.18 per cent at Rs 953.75 crore during the last quarter vis-a-vis Rs 1,241.46 crore in Q4 FY’12, the company said in a filing to the BSE.
The company’s expenditure, at Rs 860.39 crore during the quarter, was 89.14 per cent of its net sales. Its finance costs rose 7.50 per cent to Rs 59.62 crore, while the tax outgo declined over 31 per cent to Rs 30.72 crore.
The company also reported an extraordinary item of Rs 16 crore and said that it was a compensation received against cancellation of contract but did not disclose further.
For the year ended March 31, 2013, its consolidated net profit declined by a little over 25 per cent to Rs 54.82 crore largely due to rise in interest costs. Net sales rose over 11 per cent to Rs 6,270.86 crore.
At the end of the last fiscal, its total borrowings stood at Rs 2695.85 crore. The company also has cash and cash equivalents of Rs 300 crore.
Following the results, the shares rose 1.69 per cent to close at Rs 72.35 apiece on the BSE today.
Based in Western India, Uttam Galva is one of the leading manufacturers of cold rolled steel and galvanised steel.