Stainless steel-maker Varun Industries today reported a net profit of 15.41 crore for the quarter ended September 30, 2011, a growth of 24 per cent vis-a-vis the corresponding period of the previous fiscal.
The company had posted a net profit of Rs 12.39 crore for the corresponding quarter last fiscal.
Net sales of the company grew by 2 per cent to Rs 903.60 crore during the quarter from Rs 885.82 crore in the July-September quarter of FY'11, it said in a filing to the Bombay Stock Exchange.
"Our total growth target for the fiscal is 15 per cent and we are in line with our target. In percentage terms, it may look small, but in absolute numbers, we are on our target," a company spokesperson said.
He added that the company experienced accelerated growth in the corresponding quarter last fiscal, as the global economy was in good shape and Varun Industries had ventured into commodities trading.
In a statement, the company said reserves of rare earth elements it found in Madagascar in July are "substantially higher" than the earlier estimate of 266.8 million tonnes.
"CPG Resources - Mineral Technologies, a globally renowned laboratory based in Australia, has certified 46.5 per cent average mining grade of heavy mineral rare earth. As per this report, it is expected that Total Heavy Mineral (THM) reserves in the deposits will significantly increase from the earlier estimate of 266.8 million tonnes," the statement said.
The company had also acquired the cookware and non-stick manufacturing plant of Kishco Ltd in Nashik for Rs 10 crore during the quarter and the company is expecting 15-20 per cent growth in the pressure cookers segment with this acquisition, the statement added.
During the quarter, the company also commissioned new wind turbines with a combined capacity of 5 MW under its windmill project in Jaisalmer, Rajasthan, thereby increasing its total wind power generation capacity to 13.95 MW.
"We are on the verge of realising significant potential from our various assets in Madagascar as we are witnessing steady progress in our mining operations for gold and rare earths," company chairman Kiran Mehta said while talking about the Q2 results.
"This, coupled with our foray into the retail segment through acquisition of Kishco plant, has opened new horizons for Varun in the near future," he added.
Shares of the company were being traded at Rs 274 apiece on the BSE at 1355 hours, up 2.70 per cent from their previous close.
Source: www.economictimes.com
Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd
No comments:
Post a Comment