Monnet Ispat Q3 net up 4% at Rs 73 crore

NEW DELHI: Monnet Ispat and Energy posted a 4% increase in its third-quarter net profit due to better management of raw materials.

Net profit for the October-December period stood at Rs 73 crore, against Rs 70.2 crore in the year-ago period, the Delhi-based steel and power producer said on Thursday.

"This was only because the company addressed high raw material prices and efficiencies very carefully in an otherwise grim quarter," executive vice-chairman Sandeep Jajodia said.

The quarter is normally good for steelmakers because of festival-driven sales, but the September-December period in 2011 was tough for most companies on account of raw material problems and pricing pressure.

Monnet's operating margins, down to 25% from 30% a year ago, were affected by higher iron ore prices. "While iron ore prices increased by 35% during the period, sponge iron prices increased by only 18%," Jajodia said.