Balasore Alloys Q1 net profit is Rs 1.53 cr

KOLKATTA: Balasore Alloys, a leading producer of ferro chrome in the country, has notched up a Rs 1.53 crore net profit for the first quarter this year. This marks a quantum leap in net profits of Rs 8 lakh reported in the corresponding period last year.

The improved profitability was largely due to higher efficiency in use the use of raw materials, improved furnace availability, superior product mix and better marketing initiatives. These measures in turn combined to generate higher sales for the company during the quarter under review, an official statement said.

Increased focus on the export market led to its products reaching out to some sixteen countries across the world in highly competitive international markets, the release added. Export turnover for the quarter ended June 2006 registered a 17% increase at Rs 40.04 crore, against Rs 34.24 crore for the previous corre-sponding quarter.

The company interest costs have come down by a further 8.96% at Rs 3.86 crore for the quarter ended June 2006 as against Rs 4.24 crore in the previous corresponding quarter. This was largely due to prudent fiscal management and implementation of the company’s corporate debt restructuring efforts.

Balasore Alloys, earlier known as Ispat Alloys, has diversified its product profile and has commenced mining of manganese ore pursuant to grant of mining lease of the raw material from the government. At the same time, the company is also eyeing for more commercially viable acquisitions.