PSL to complete HPCL pipeline order by April

PSL Ltd, which recently bagged a Rs 255 crore contract for Hindustan Petroleum Corporation's Delhi - Mundra pipeline project, plans to complete the order by the end of the current financial year.

The turnkey oil pipeline order includes supplying spiral welded steel pipes for the Delhi-Mundhra pipeline of HPCL, which would assist in transport of light oils such as diesel, petrol and kerosene from Mundra, Gujarat to Delhi for marketing in North India.

"We have received the order on June 22, with a deadline of 10 months to complete the project. We aim to complete the project by the end of the current financial year, a month ahead of the designated time. The scope of the project for PSL includes manufacturing and supply of approximately 735,000 metres of pipes to be manufactured in our state-of-the-art-manufacturing facilities at Kandla, Gujarat," Ashok Punj, managing director, PSL Ltd said on Tuesday.

PSL is India's largest producer of spiral welded steel pipes, with an installed capacity of 1,025,000 metric tonnes per annum (MTPA).

The company has reported a consolidated income of Rs 1450 for the financial year 2004-05, up 70 per cent from Rs 899 crore posted in 2003-04.

Operating revenues increased 20 per cent to Rs 44 crore (Rs 38 crore). Profit after tax for the last financial year was Rs 32 crore as compared with Rs 28 crore in the 2003-04, according to the annual audited financial results for the year ended 2004-05, which were taken on record at the company's board meeting on Monday.

"The year 2004- 05 was a year of milestones for PSL. The company continued to meet the new challenges on the road. These include company's diversification into new business area like designing and setting up pipe mills for clients, the company touched the global production capacity standards by crossing the 10, 00,000 MTPA. This was backed by PSL's strong performance on the export front. All this has encouraged the company to strengthen its presence within the country and set up operations overseas," said Punj.

The company posted a net profit of Rs seven crore in the quarter ended March 31, 2005, compared to Rs 8.5 crore during the corresponding period last year.

The total income of the company, jumped to Rs 537 crore during the quarter as against Rs 262 crore during the corresponding period in the previous year, registering a 120 per cent increase according to the audited financial results for the quarter ended March 31, 2005, which were approved at the company's board meeting on Monday.

The board of directors of the company recommended a final dividend of 20 per cent for the last fiscal.