Gujarat NRE Coke has taken a hit on its bottom line for the first quarter ended June 2009, with net profit touching Rs. 3.64 crore against Rs. 94.40 crore in the same period a year ago. Net sales during the quarter were Rs. 310 crore against Rs. 377.60 crore.
Company sources attributed the dip in profit to the dynamics in the steel industry which has in turn affected the coke industry. “Our results had been affected since the December quarter. However, we are now coming out of the downturn,” a company official told The Hindu. The company had posted a Rs. 103.20-crore loss in the previous quarter, a company release said, adding that the results showed that coke demand in India had been on the rise.
Though the current recession had its impact on the consumption of coke in the global market, the domestic scenario has been improving due to increased consumption levels, which augurs well for merchant-manufacturers of met coke in India.
As company Chairman and Managing Director Arun Kumar Jagatramka says, “Demand for coke has been buoyant in India in the first half of 2009. Shortages of coking coal are adding to the pressure in the market. We plan to increase our capacity further by setting two greenfield plants of one million tonnes each in Andhra Pradesh and Gujarat to take advantage of this ever yawning gap of demand and supply of coke in India.”
Source: The Hindu
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