Bhushan Steel aims higher production target on good Q2

NEW DELHI: Delhi-based Bhushan Steel that essentially makes cold rolled coils (CRC) consumed in sectors such as automobiles and home appliances, is looking to hike production capacity anticipating higher domestic demand that would help it grow revenues 20-25% for the next two quarters.

The positive outlook on revenues comes after two consecutive quarter of over 20% growth in volume from the domestic market even as exports declined. But lower prices had subdued sales which dropped to Rs 1,298.48 crore for the quarter ended September���09 from Rs 1,515.49 crore in the same quarter last year.

Although prices remain lower than last year, the management feels the high volume growth will allow the company to report 5-10% growth in revenues for the full year ending March���10.

The mid-sized steel firm, on Thursday reported net profit of Rs 189.16 crore for the second quarter ended September, an increase of 32% over the year ago period. Higher profits were due to a drop in raw material cost and interest payments.

"The demand growth has been good and we expect it to continue in coming quarters also. Demand in automobiles and white goods has specially been very encouraging," said Nitin Johri CFO Bhushan Steel.