Vadodara-based Diamond Power Infrastructure Limited (DPIL) will invest Rs 753 crore towards expansion projects, which would be completed over a period of 30 months in three phases, the company informed in a statement issued on Tuesday.
The board of directors of the company at their board meeting held on February 13, 2012, approved the company's ambitious expansion project aggregating to Rs 753 crore. The project execution would start from April, 2013, the company said in a statement filed with the Bombay Stock Exchange (BSE).
Of the total planned investments, the company is already investing Rs 50 crore towards 6.3 megawatt windmill project, which is expected to go on stream in March 2012.
The project cost is appraised by Dun & Bradstreet and Axis Bank, with a mix of rupee term loan or external commercial borrowing (ECB) loan and suppliers credit aggregating Rs 440 crore, which has been tied up. According to the company, the remaining Rs 333 crore would be financed through internal accruals.
The company plans to expand its conductors manufacturing capacity to 150,000 MT per annum from the current capacity of 50,500 MTPA. Additionally, the company also plans to increase its rod making capacity to 122,000 MTPA from the existing 32,000 MTPA. For the medium voltage cables, the company plans to put up additional three lines, each with an installed capacity of 2,500 kilometers, totalling to 7,500 kms, which will augment the current capacity of 5,600 kms to 12,700 kms.
Announcing the third quarter financial results of the company, the board of directors announced that the net profit for the quarter stood at Rs 30.77 crore for the quarter ended December 2011, up by 5.3 per cent against Rs 29.23 crore in the same period last year.
Company's net sales rose by 42.4 per cent to Rs 539.06 crore for the quarter as compared to Rs 378.48 crore in third quarter last year.