LANCO INDUSTRIES

Srikalahasthi Pipes, which is traded on the BSE in its old name, Lanco Industries zoomed to a new high after it declared its very good performance for Q2FY15. The company posted a 3% (YoY) lower net sales at Rs.257 crore and thanks to the 9% fall in operating cost and 21% drop in interest cost, the company ended the quarter with a net profit at Rs.18 crore, up over 2.25 times. And the good news, its net profit for H1FY15 was at Rs.31 crore and this is almost equal to FY14 net profit of Rs.39 crore. With two more quarters to go, clearly it will end FY15 on a high note.

The company has successfully completed commissioning and synchronization of its 132 KV sub-station, which will provide stable and quality power supply. The company’s expansion program of Rs.100 crore for creating the balancing facilities is as per schedule  and the company is hopeful of completing theproject during the last quarter of current fiscal. Post this expansion, its Ductile Iron pipe production is expected to go up to 50,000 mtpa.