Kolkata-based Electrosteel Castings Ltd has decided to split its stocks having face value of Rs 10 each into 10 equity shares of Re 1 each.
The decision was taken by the board of the company in a meeting held on Monday. The board will decide the date on which this sub-division would become effective after obtaining the shareholders’ approval on August 31.
In the first quarter of the current financial year, Electrosteel’s revenue touched Rs 320.83 crore as compared with Rs 260.61 crore during the corresponding quarter of 2006-07.
“The company was able to mitigate the impact of rupee appreciation and rise in input costs, iron ore in particular, by prudent forex management, resulting in a quantum jump of 41% and 57% in pre-tax and post-tax profits, respectively, when compared with the first quarter of the previous fiscal,” the company said in a statement.
In absolute terms, profit before tax and profit after tax for the quarter under review were Rs 41.72 crore and Rs 29.82 crore, against the corresponding figures of Rs 29.54 crore and Rs 18.94 crore respectively.
To offset the rise in cost of iron ore, Electrosteel is installing a sinter plant, which will use iron ore fines instead of the costly lump iron ore and help contain raw material costs. The project is going on according to schedule and the commissioning is expected by December 2007, the company statement said.
Electrosteel has been granted allocation of the Parbatpur coal block in the Jharia Coal Field for mining of coal for captive consumption. It has also been allotted an iron ore mine in Kodolibad, Jharkhand.
The financial benefit of the coal mines shall start accruing from 2008-09 onwards, the company said.