Essar Steel net profit dips 29% to Rs 61.46 cr

India's third largest steel producer, Essar Steel's net profit slipped 28.9 per cent to Rs 61.46 crore for the quarter ended March 31, 2007, compared with Rs 86.37 crore posted in the corresponding quarter of the previous year.

Income from operations grew 52.93 per cent at Rs 2,537.59 crore in the March quarter compared with Rs 1,659.31 crore in the previous comparable period.

The company attributed the drop in net profit to rising costs of iron ore and energy, and higher charge for depreciation due to investments in capacity expansion.

Net profit for the full year ending March 31, 2007, fell by 17.67 per cent at Rs 436.49 crore compared with Rs 530.18 crore reported during the previous year.

Income from operations for the full year ended March 31, 2007, grew by 31.38 per cent at Rs 9,000.46 crore compared with Rs 6,850.45 crore posted during the previous year.During the year, the company completed its capacity expansion to 4.6 million tonnes per annum (MTPA) at its plant in Hazira.

The pellet plant capacity at Visakhapatnam was also increased to 8 MTPA to cater to the increased requirements at the steel plant. Additions at the cold rolling complex were also completed.

The company, the largest exporter of flat steel from India, exported 246,000 tonnes during the quarter. Domestic sales in the quarter registered a growth of 16 per cent at 0.54 MT. Total domestic sales for the year showed a growth of 13 per cent at 2.8 MT.