Uttam Galva Steel Q4 Net up over two-fold at Rs 40 cr

The company had reported a net profit of Rs 14.05 cr during the January-March quarter of 2010-11

Uttam Galva Steels' standalone net profit soared nearly two-fold to Rs 40 crore for the fourth quarter ended March 31, largely on account of increased efficiency in operations.

The company, which manufactures and exports value added steel products, had reported a net profit of Rs 14.05 crore during the January-March quarter of 2010-11.

Net sales of the company, in which world's largest steel maker ArcelorMittal holds 34.42% stake, were down over 23% to Rs 1,241.46 crore during the quarter, it said in a BSE filing.

It, however, did not provide consolidated results for the quarter.

The company's total expenditure during the January-March quarter came down by about 28% to Rs 1,107.37 crore, while its finance costs were also down by 21% to Rs 55.46 crore.

For the full year ended March, 2012, the company reported a decline of 4.62% in consolidated net profit at Rs 73.10 crore. Its net sales, however, were up over 12% at Rs 5,647.38 crore during the period.

"Increase in interest costs, depreciation of assets and higher provisioning of tax is eating our bottomline. We are dedicating all our resources to improve our efficiency and EBITDA margins," Uttam Galva Deputy Managing Director Ankit Miglani said.

Miglani, however, denied that company had any plans to sell its assets to reduce debt, which is about Rs 2,000 crore.

"We are not selling or liquidating any assets to reduce debt. Our focus is on improving margins by improving efficiency and through that only, we aim to reduce our debt," he said, adding that the company does not have a significant borrowing plan for the current fiscal.

Shares of the company closed today at Rs 70.85 apiece on the BSE, up 0.07% from the previous close.