SteelCast Ltd

Steelcast, a small-cap company has been in the limelight. This was after the company announced its expansion plans. Till date the company has invested Rs.100 crore to raise capacity fro, 10,000 tpa to 30,000 tpa. Its capacity till end of Fy13 stood at 22,000 tpa and by end of Oct’13, it is expected to go up to 30,000 tpa. Last year, the company had invested around Rs 45 crore while this fiscal it will be investing another Rs 23 crore.  In the issued Press statement, the company has stated that with this brown-field capacity expansion being over by October 2013, Steelcast will become one of the few companies in the world making niche product for mining & construction equipment companies worldwide. With the capacity increase, the company aims higher exports. As at 31st March 2013, 53% of the total sales came from exports and by March 2015, it aims to take this share up to 65% of total sales.

Steelcast, as the name suggest is a steel castings manufacturing company catering to earthmoving equipment manufacturers, mining & mineral processing equipment manufacturers, construction and heavy electrical equipment manufacturers. Located in Bhavnagar, Gujarat, it continues to have equity equity participation from Kurimoto Ltd. of Japan, albeit a very small, almost token stake at 2.2%. The company had ended Q1FY14 on an unexceptional note. Net sales was down 11% at Rs.54 crore but lower operating cost and a higher other income helped the company end the quarter with a 33% rise in net profit at Rs.4 crore. As at 30th June 2013, promoters holding stood at 50.88%, with not a sinle share being held by either a FII or DII.