Hindustan Steelworks topline grows 21.27% in 2011-12

KOLKATA: Hindustan Steelworks Construction Limited (HSCL) has reported a top line growth of 21.27% during 2011-12 with a total income of Rs.1208.23 crore against Rs. 996.30 crore achieved during 2010-11. The company's operational profit went up by 16.13% to Rs. 82.70 crore in 2011-12 as against Rs 71.21 crore in 2010-11.

"The company's market share also improved by about 4% with orders worth Rs.1899 crore booked in steel as well as in infrastructure sector across the country," Malay Chatterjee CMD, HSCL said. Earnings per employee increased by 75.94% from Rs.1.33 crore to Rs.2.34 crore, indicating its cost effective business operations during the year.

HSCL's restructuring proposal, which was recommended in totality by BRPSE in 2008, is awaiting the consideration of Committee of Secretaries before being put up to CCEA approval by the company's administrative ministry.

The restructuring proposal contains the provision of conversion of Rs.68.98 crore towards Plan loan and interest accrued there on to equity and the non-plan loan of Rs.513.10 crore to 30 year 5% Non-cumulative Redeemable Preferential Shares.

The package also provides for waiver of accumulated interest of Rs.433.79 crore accrued on non-plan loan and Rs.26.84 crore towards outstanding guarantee fees. The post restructuring paid up capital will go up to Rs.700 crore from the existing Rs.117.10 crore. HSCL, however, will pay back the bank loan of Rs.518.26 crore, secured for funding VRS, in 10 yearly installments.