Usha Martin, a leading wire rope and specialty steel manufacturer, Tuesday reported a 86.48 percent decline in its consolidated net profit to Rs.3.47 crore during the quarter ended June 30 from Rs 25.67 crore in the same period last year.
However, the turnover of the firm during the period under review soared by 11 percent on consolidated basis to Rs.846.09 crore.
According to Usha Martin managing director Rajeev Jhawar, the dip in net profit was a result of low demand due to economic downturn.
"It is a difficult period. Even in tough times, our export sales grew up by over 40 percent. From the European subsidiary only, in 2011-12, the income after tax was $3.5 million and overall the international business contributed to around $14 million," Jhawar said.
Going forward, the company plans to invest Rs.1,200 crore (Rs.12 billion) for the implementation of new projects in Jamshedpur to enhance its presence in the specialty steel segment.
"Coke oven of 4 lakh tonnes per annum and 35 MW waste heat power plant will be commissioned from March next year," said Vijay Sharma, joint managing director of the company.