Monnet Ispat and Energy today reported 4.08% rise in third quarter net profit at Rs 73.05 crore on increased revenue.
The company, which is into steel and power sectors, had reported Rs 70.18 crore net profit during the October-December quarter last fiscal.
"The operating margins have declined from 30 per cent to 25% due to steep appreciation of iron ore prices by about 35 per cent and the corresponding increase in the price of sponge iron by only 18%," it said in a release.
Monnet Isapt and Energy's turnover increased by 38.5% during the quarter at Rs 481 crore against Rs 347.14 crore in the October-December quarter last fiscal.
The steel business of the company contributed Rs 414.26 crore to the topline, while Rs 74 crore came from the power business.
"The steel industry is passing through very challenging times on account of inadequate availability of the key raw materials like coal and iron ore accompanied by the pricing pressure," company Executive Vice Chairman & Managing Director Sandeep Jajodia said.
"Monnet is trying to negotiate its way by managing raw material balances on most cost competitive terms. We are trying to operate plants at high levels of efficiencies both in terms of production and costs manifested by our performance in the previous quarter," he added.
The company consumed raw material worth Rs 315.14 crore during the quarter against Rs 202 crore in the corresponding quarter last fiscal.
Interest outgo of the company also went up to 19 crore from Rs 5.37 crore a year earlier.
