Monnet Ispat & Energy (MIEL) today reported a marginal rise in its first quarter net profit at Rs 73.15 crore, driven by better prices of sponge iron, a raw material for steel making.
The company had reported a net profit of Rs 72.71 in the April-June quarter of the last fiscal, it said in a release.
"Despite the production shut down which has affected the production numbers, the company was able to maintain the sales volume based on available inventories. As prices remained firm during the quarter, the overall revenues and profitability of the company remained unimpacted," MIEL Executive Vice-Chairman and Managing Director Sandeep Jajodia said.
The company had closed down its sponge iron manufacturing and power generation capacity at Raigarh for some part of the reporting quarter for process improvement.
However, despite that its raw material consumption during the quarter went up by Rs 25 crore to Rs 252 crore impacting the bottomline.
MIEL's total income during the quarter also rose slightly to Rs 427 crore from Rs 420 crore in the corresponding quarter of last fiscal.