Srikalahasthi Pipes Ltd’s expansion of its coke oven plant and work on its captive power plant are expected to be completed in the first quarter of 2018-19.
GS Rathi, Director, said the company had successfully raised ₹250 crore through its Qualified Institutional Placement (QIP) last December.
The company had issued 69,34,812 equity shares with face value of ₹10 at ₹360.50, including a premium of ₹350.50 per share. Rathi said the volatility of coal prices in the global market is continuing. Prices of iron ore and ferro silicon, the main raw materials in the domestic market, have increased recently.
Marketing strategy
However, with continued thrust on improving the operational efficiencies, cost control, reduction in financial cost and appropriate changes in the marketing strategy, the company is hopeful of insulating its margins.
Rathi said the domestic demand for ductile iron pipes is stable and upcoming water supply projects in Amaravati capital development and infrastructure projects in smart cities and under AMRUT in South India would ensure regular business.
For the third quarter ended December 2017, the company posted a profit of ₹39.48 and total income of ₹398.49 crore as against a profit of ₹40 crore and income of ₹301.19 crore for the corresponding quarter last year.
For the nine months ended December 2017, the company posted a profit of ₹113.07 crore and income of ₹1,190.79 crore as against a profit of ₹109.04 crore and income of ₹789.40 crore.