Electrosteel Castings net drops 53% in Oct-Dec'14 on coal levy

KOLKATA: Electrosteel Castings Limited ( ECL), a leading player in water infrastructure business and the country's largest ductile iron (DI) pipe manufacturer has posted a 53% drop in net profit of Rs.15.76 crore for the quarter ended December 2014 as against Rs 33.73 crore in the previous corresponding quarter.

The above results include effect of payment of additional levy of Rs 295 per tonne against coal extracted from the mining operation as stipulated by the Supreme Court. Last September, while cancelling allotments of over 200 coal blocks, the apex court had directed all companies to pay the fine for each tonne of coal mined.

Electrosteel’s profit before tax (PBT) went down 51.6% to Rs.23.27 crore in the quarter under review from Rs 48.14 crore in the previous corresponding quarter ended December 2013. The company’s revenue showed a growth of 19% in December 2014 quarter to Rs 610.72 crore against Rs 512.72 crore in the December 2013 quarter.