Monnet Ispat Q2 net jumps

BS 200 SCORECARD

In line with the sterling performance of the steel sector, iron sponge manufacturer Monnet Ispat has forecast a 200 per cent jump in turnover during the current fiscal after it reported a 223 per cent surge in net profit during the second quarter to Rs 29.1 crore as against Rs 9 crore during the same period last year.

The company also declared an interim dividend of 25 per cent for its shareholders. The turnover of the sponge iron producer spurted by about 249 per cent to Rs 184.1 crore in the July-September period. as compared to Rs 52.7 crore in the corresponding period last fiscal.

The company vice-president for corporate affairs Ajay Bhat said that Monnet was on an expansion mode with plans to augment the sponge iron capacity from the current three lakh tonne per annum to 7,40,000 tonne annually.

"A new facility is coming up in Chhattisgarh with an investment of Rs 235 crore," he said. The new facility will have an annual capacity to produce up to 4,40,000 tonne sponge iron and will be completed by December 2005, he said adding the project was being financed through equity and debt.

Monnet Power Ltd (MPL), an associate company of Monnet Ispat Ltd (MIL), was merged with MIL in January this year. Bhat said the merged company was targeting a 200 per cent growth in turnover to Rs 600 crore by end of current fiscal.

"The company had a turnover of Rs 200 crore in the last fiscal, and is likely to touch Rs 600 crore by the end of the current fiscal," he said.