Bhushan Steel Q1 net profit down marginally to Rs 206 cr

MUMBAI: Bhushan Steel today reported a marginal decline of 1.90 per cent in net profit to Rs 205.97 crore for the quarter ended June 30, 2012, largely due to increase in interest payments.

The Delhi-based steel major had posted a net profit of Rs 209.96 crore during the corresponding quarter of the last fiscal.

Net sales of the company rose by nearly 27 per cent to Rs 2,747.34 crore during the quarter against Rs 2,165.85 crore in the April-June period of 2011-12, it said in a filing to the BSE.

Besides, the company's interest payments increased by over 75 per cent to Rs 377.80 crore during the quarter, impacting its profitability.

In a separate filing, the company said its board has recommended a dividend of Rs 0.50 per share for the ordinary shareholders for the last fiscal, while a dividend of Rs 10 per share has been recommended for the shareholders having preferential shares of the company.

It added that the company has commissioned a new cold rolling unit in the last quarter, although it did not give further details.

Shares of the company today closed at Rs 472.50 apiece on the BSE, up 0.28 per cent from the previous close.