fsxunlian@hotmail.comKolkata India - Usha Martin sees FY10 margins and revenue growing
Form : http://www.chinadropwire.com/ Author: Time:2009-7-6 15:12:07Steel wire ropes maker Usha Martin Ltd told Reuters reporter Niladri Bhattacharya in an interview that the company expects operating margins to grow by 20 percent in the current fiscal and sees revenues growing 10-15 percent, a top official said on Friday. "We expect our margins to grow by 20 percent on the back of high domestic demand," Revenues would also grow, bouyed by higher government spending on infrastructure and stable steel prices, Managing Director Rajeev Jhawar said, adding that he expects to see a 3-4 basis point increase in margins in 2009/10. "Raw material prices have corrected significantly, and also, steel prices are expected to stabilise at current levels." "Given the proposed government spending in the infrastructure sector, which should benefit the steel sector, our revenues would grow by 10 to 15 percent in the current fiscal," he said.
However, he said growth would be moderate in the current April-June quarter as the company has been concentrating on expanding the capacity.
The first quarter of the fiscal would be similar to the last few quarters, but results would perk up in terms of revenue generation and profitability as the new capacities would be commissioned, he said.
The company is expected to complete its 21 billion rupees capes by September 2010, of which it has already spent 17 billion and earmarked the rest for this fiscal, to boost steel capacity to 800,000 million tonnes from 340,000 tonnes.
"So by the end of FY11 when all our new projects would be commisioned, our total revenew would increase to 50 billion rupees," Jhawar said.
Usha martin also plans to enter the power generation business in a couple of years, Jhawar said. "We have identified some coal blocks with an estimated reserve of 120-150 million tonnes of coal, subsequently, we have applied to the Jharkhand government for allocation of coal block," he said."Though everything is in a preliminary stage, we would like to generate 1000 MW of power once the block is alloted to us."
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