SARDA ENERGY AND MINERALS LTD
Add to watch list to get report alerts
BSE Code:
504614
NSE Code:
SARDAEN
Business Profile
Business Profile
Incorporated Jun. 23, 1973 as Raipur Wires & Steel, Raipur Alloy & Steel (RASL) is an integrated steel plant involved in iron ore mining and producing sponge iron, mild steel ingots, billets and rolled products. The name of the company was changed to the current one Jun. 28, 1985. The company was promoted by Tejpaul Group of Mumbai in 1973. It was taken over by the Sarda Group in 1979 as a sick unit. The manufacturing plant of the company is located in Raipur, Chhattisgarh. RASL has its own iron ore mines and power, the other key input is supplied by an associate company, Chhattisgarh Electricity Company Limited (CECL). RASL has undertaken an aggressive expansion plan in order to utilize its mines effectively. The company will increase sponge iron capacity from 210,000 MT to 360,000 MT by Apr. 2008 at a cost Rs 750 million. Steel ingot capacity has been hiked from 40,000 MT to 140,000 MT Oct. 2006 and there will be further increase to 240,000 MT likely by Mar. 2007 at an additional cost of Rs 500 million.
Financials
The company reported a 76% growth in net profits to Rs 23.47 million for the quarter ended Sep. 2006 as against Rs 13.29 million during the corresponding quarter in the previous year. Sales for this period decreased 23.39% to Rs 451.31 million from Rs 589.11 million. RASL, for the year ended Mar. 2006, reported a 5.13% decline in sales to Rs 2,156.44 million as against Rs 2,273 million for the year ended Mar. 2005. Net profit for this period also declined 33.73% to Rs 120.18 million as against Rs 181.35 million. The EPS for FY06 stood at Rs 9.19.
Recent Developments
The board of directors of the company approve the proposal of merger of CECL and Raipur Gases with the company.
RASL company signs an MoU with the Chhattisgarh government for the rehabilitation of people affected by the acquisition of land for its coal mining project in Raigarh.
Future Plans
RASL intends to set up a pelletization plant of 600,000 MT by Apr. 2008 at a cost of Rs 1,250 million. The facility will enable RASL to utilize the low-grade iron ore captively produced in steel making and thereby enhance operating efficiencies.