Wire and wire rope maker Usha Martin Ltd expects to save Rs 120 crore annually on input cost by exploiting its captive iron ore and coal mines. While the company has been sourcing ore from its recently commissioned mine in Jharkhand from the last quarter, the coal mine will be commissioned by October-November.
According to managing director Rajiv Jhawar, operating margins, which currently stand at 22%, will reach 27-28% over this period.
Two of the company’s ongoing projects will be commissioned during the current fiscal.
Usha Martin’s plant at Houston will start its first-phase production of 6,000 tonne during the current quarter, while the joint venture to produce high-margin oil tempered wires, Pengg Usha Martin Wires Pvt Ltd, at Ranchi, will be commissioned in the last quarter.
The company on Wednesday announced a 58.48% increase in profit to Rs 32.22 crore over the Rs 20.33 crore of the year-ago period. Net sales rose 22.07% to Rs 370.98 crore (Rs 303.90 crore).