Usha Martin Q1 consolidated net dips

Consolidated net profit of Usha Martin fell 51 per cent to Rs 32.03 crore during the first quarter of 2009-10 against Rs 65.08 crore in the same period last fiscal.

Net sales for the quarter also fell by 13 per cent at Rs 608.54 crore compared to Rs 698.69 crore in the same period last year.

Chairman of Usha Martin B K Jhawar said that the decrease in turnover and profitability during the first quarter was due to the planned shutdown of the wire rod mill for 24 days.

Jhawar told shareholders at the company's AGM here today that the capacity of the wire rod mill would be enhanced to four lakh tonnes per year.

The other reasons for lower profitability were economic slowdown and high incidence of deferred tax liability.

Post expansion, the company's turnover would touch Rs 5,000 crore, he said.

On a standalone basis, net profit of the quarter fell 76.3 per cent at Rs 13.40 crore compared to Rs 56.70 crore in the same period last year.

Usha Martin has manufacturing facilities at Ranchi, Jamshedpur, Hoshiarpur, UK, Thailand, UAE and US.