Chennai: Srikalahasthi Pipes Limited recorded a 20 per cent higher quarterly production quarter ended September 2018, but net profit of the company fell due to ‘unprecedented depreciation’ of rupee value among other things.
“The company has achieved higher quarterly production of 79,569 tonnes during the quarter ended 30 th September, 2018, as compared to 66,822 tonnes which is higher by about 20 per cent vis-à-vis corresponding quarter of the previous year.
Considering the current pace of production, the Company would be able to make good the production loss suffered in Q1 of FY 2019,” whole time director of Srikalahasthi Pipes Limited, G S Rathi said.
Commenting on the profits, he said, “The profit before tax for the quarter ended 30 September, 2018 was Rs 46.29 crore, compared to Rs 51.46 crore reported in the corresponding quarter of previous year. The Profit after tax for the quarter under review is Rs 33.26 crore as against Rs 37.12 crore in the same quarter of the previous year.”
The net profit of the company is lower by about 9 per as compared to quarter ended September mainly due to higher cost of coking coal, iron ore, unprecedented depreciation of rupee in relation to US Dollar and lower sales realization, a statement from the company said.