Hit by a 23% decline in sales, Uttam Galva Steels today reported 29.52% fall in standalone net profit at Rs 28.19 crore for the fourth quarter ended March31, 2013.
The company, in which world's largest steel maker ArcelorMittal holds 29.05% stake, had reported a net profit of Rs 40 crore in the same quarter of 2011-12. It, however, did not publish consolidated results for the quarter.
Uttam Galva's net sales was down 23.18% at Rs 953.75 crore during the last quarter vis-a-vis Rs 1,241.46 crore of Q4 of FY'12, it said in a filing to the BSE.
Its expenditure, at Rs 860.39 crore during the quarter, was 89.14% of its net sales. Its finance costs rose by 7.50% at Rs 59.62 crore during the quarter, while the tax outgo declined by over 31% to Rs 30.72 crore.
The company also reported an extraordinary item of Rs 16 crore and said that it was a compensation received against cancellation of contract but did not disclose further.
Based in Western India, Uttam Galva is one of the leading manufacturers of cold rolled steel and galvanized steel.
For the year ended March 31, 2013, its consolidated net profit declined by a little over 25% at Rs 54.82 crore largely due to rise in interest costs. Net sales of the company, during the year, rose by over 11% at Rs 6,270.86 crore.
At the end of the last fiscal, its total borrowings stood at Rs 2695.85 crore. The company also has cash and cash equivalents of Rs 300 crore as on March 31, 2013.
Following the results, shares of the company rose by 1.69% to close at Rs 72.35 apiece on the BSE today.
