Q1 profit dips due to internal issues at Srikalahasthi Pipes

By NT Bureau Published on Jul 31, 2018 04:10 PM IST

Chennai: The Board of Directors of Srikalahasthi Pipes Limited approved the un-audited financial results for the quarter ended 30 June here, where they stated that the profit after tax (PAT) was Rs 17.29 crore as against Rs 36.44 crore in the same quarter the previous year.

Whole-time Director, G S Rathi, while briefing about the financials said the profit before tax (PBT) for the quarter was Rs 21.17 crore, compared to Rs 50.32 crore reported in the corresponding quarter of previous year.

Rathi informed that the main reason for the lower profitability during the quarter is due to technical issue in MBF since mid May, which has since been addressed after taking shut down of about 12 days in the month of June resulting in lower production and higher cost.

The profit was further affected by the increase in themain raw materials i.e. coal, iron ore and Ferro silicon prices. The Company is hopeful of recovering the loss of production in the coming quarters., a release from the firm said.

Rathi informed that the Board has decided to replace the existing Mini Blast Furnace by installing a new mini blast furnace (MBF) of 350 M3 / 400 M3 to have liquid metal capacity of over 1,000 tonnes per day in the existing location. The same will be synchronized with existing facilities.

The company's project for installation of additional Coke Oven battery for expansion of capacity was successfully commissioned during the quarter under review and the project for installation of additional boiler is in advanced stage of completion and shall be in place by end of Q2.

As regards the proposed Ferro Alloys project, he informed that pre-project start up activities are going on and the project is expected to commence in the current quarter.