Mideast Integrated Steels Ltd (Mesco Steel) has posted 197% jump in its net profit for April-September period of this fiscal compared to corresponding period of previous fiscal.
Rita Singh, the company's chairman and managing director said, “In the first six months, Mesco Steel posted a profit of Rs 134.13 crore which is higher than the profit of Rs 90.20 crore earned during the 2011-12.”
Mesco's turnover in the period under review rose to Rs 402.41 crore compared to its total income of Rs 546.75 crore in 2011-12. The steel company expects to double its turnover in the current fiscal.
Mesco hopes to deliver even better performance in the second half of this fiscal since the constraints caused by the monsoon and other local factors will not be there to affect the production both at the mine and at the plant.
The coke rate has come down thereby increasing the productivity of the plant operations. With the commissioning of railway siding inside the plant and revamp of raw material handling unit, the associated costs will be further reduced. Through efficient management, coke consumption has been controlled, thereby increasing the profitability in the plant operations.
After having announced the maiden dividend of five% for 2011-12, the company has now posted earnings per share of Rs 9.73 for the April-September period of 2012-13. On annualized basis the earning per share works out at Rs 19.46.
The company has embarked on a major expansion program for raising its steel making capacity to 3.5 million tonne per annum and all out efforts are being made to implement the project in the shortest possible time.
