Mukand FY06 net down 34%

Mukand, manufacturer of speciality and alloy steel, has posted a 34% drop in net profits for FY06 at Rs 121.96 crore, when compared with Rs 185.88 crore in FY05.

"But, last year's figures include a one-time settlement debt waiver of Rs 197 crore. Thus, this year the company has actually made a turnaround from the loss last year," Niraj Bajaj, managing director of Mukand, said.

Net sales for FY06, however, were up 3.5% to Rs 1,565 crore from Rs 1,511 crore, a year ago."This is a tremendous turnaround in the company, made possible by better product mix, cost cutting and increase in productivity," said Bajaj. 

The company reported a 50% increase in net profit at Rs 27.42 crore for Q4FY06 as compared to Rs 18.55 crore in Q4FY05. Although, net sales for Q4FY06 were down by 1.1% to Rs 413.28 crore from Rs 418.04 crore in Q4FY05.

The company also announced a capital expenditure of Rs 250 crore to expand capacities including in steel production and hot rolling facilities. This will be completed by FY08.