Monnet Ispat and Energy Ltd
(MIEL) reported a 4 per cent rise in December quarter profits on higher steel
sales. Net profit for the quarter grew to Rs 73 crore as against a net of Rs 70
crore in corresponding previous quarter.
However, the profit growth
was weighed down by high input and interest costs.
Operating margins declined
to 25 per cent from 30 per cent on account of steep rise in iron ore prices,
the company said.
Iron ore prices were up by 35% during
the quarter, while the corresponding rise in sponge iron prices was only 18%.
“The steel industry is passing
through very challenging times on account of inadequate availability of key raw
materials like coal and iron ore accompanied by pricing pressure. Monnet is
trying to negotiate its way by managing raw material balances on most cost
competitive terms,” Mr Sandeep Jajodia, Executive Vice-Chairman and Managing
Director, MIEL, said in a statement.
Source: The Business Line
Leave a Reply