In Q2FY13 too, the company had posted a YoY turnaround and it kept the same momentum intact in Q3FY13. The company making ductile iron pipes, posted a net profit at Rs.33 crore v/s a net loss at Rs.11 crore. But QoQ, net profit has come down 11%. Net sales at Rs.473 crore has been flat YoY and QoQ, it was down marginally by 1.2%. Around 60% of the company’s revenues come from exports, mainly to Europe and the Gulf region. Once again operating expenses soared, sequentially it was up 5% but YoY it managed to bring it down by 13%. A substantial other income at Rs.38 crore is what helped the company post a better bottomline.

Interest outgo is quite substantial at Rs.27 crore for Q3 while for 9MFy13, it was at Rs.86 crore. The company has a large debt, which is at around Rs.1800 crore. In Feb’12, the company received forest stage-I clearance for its iron ore mines located at Kodolibad, Jharkhand, from Ministry of Forests and Environment (MOEF).It is hoping to get stage-II clearance soon and if and when that comes through, maybe by Q4FY13, it can develop the mine and resume production. The mine has reserves of 91mn tonnes with 64% iron content.  Its current order booking are worth six months’ production.