The company made a gross profit of Rs 15.72 crore for the quarter and made a provision of Rs 2.54 crore for depreciation and Rs 1 crore for tax.
For the first-half of the current fiscal, the net profit stood at Rs 21.79 crore on a sales of Rs 215.71 crore, as against a net profit of Rs 12.67 crore and sales of Rs 196 crore. On an equity base of Rs 13.35 crore, it works out to an annualised earnings per share (EPS) of Rs 32.62.
While the ferro alloys division, the mainstay business for the company, contributed well to the bottomline during the second quarter, sugar division suffered a nominal loss with sales coming down to half at Rs 9 crore. There was also a drop in the revenue of the power segment due to reduced sale of surplus power.
Meanwhile, the company's 30 mw coal-based captive power plant at Dehnkanal in Orissa has been synchronised with the state power grid. It is expected to commence power generation on commercial basis in December.
The company has made an investment of Rs 80 crore on the captive power plant.
Power generated at the captive plant will be consumed by the company's ferro alloy plant there, which has a capacity to produce 50,000 tonnes of ferro chrome per annum.
The captive power plant is expected to contribute to the extent of about Rs 6 crore per annum to the bottomline of the company, since power is the major input in ferro alloys production.
