Mukand's capacity to increase by 80% by April 2008

Mukand's Specialty Steel and Industrial Machinery divisions are to increase their production capacity by 80% by April 2008.

 

The turnover including excise and other receipts for the quarter ending June 30^th 2007 was higher at Rs. 498 crore, as compared to Rs. 480 crore in the corresponding quarter of the previous year.  EBIDTA for Q1 of FY 08 was at Rs. 60.76  crore  as against Rs. 59.68 crore  for the corresponding period last year. The profit before exceptional items and tax is at Rs. 21.12 crore as compared to Rs.20.67 crore for Q1 of F.Y. 2006-07.

 

The Company's decision to focus on exports has resulted in a YoY increase of 47% in the export revenue at Rs. 38 crore in the Quarter 1 of FY 08 as against Rs. 26 crore  in the same period in FY 07. The export target set for the year 2007-08 is Rs.205 crore (USD 51.25 million) as compared to Rs.137 crore (USD 30.72 million) in the year 2006-07. 

 

The Company's CAPEX programme for increasing the steel production by 80% from 300,000 tonnes to 540,000 tonnes by FY 2008-09 is in progress and on schedule. This additional capacity will mainly cater to the growing demand of the Company's global brands such as, SKF, Bosch, Sandvik, Toyota, Bekaert, etc. The Capex of Rs. 300 crore which will be mainly funded through internal accruals will also include a green field project at Lonand near Satara, a site of approx. 40 acres, where additional down stream facilities will be installed.  The Company has already been allotted the said land by the Maharashtra Industrial Development Corporation. 

 

During the quarter under review, the turnover of the Industrial Machinery division rose by 17% at Rs.57.25 crore as against the same period last year.  The turnover for the division is expected to be higher by 31% at Rs.290 crore at the end of the current year.  To enhance its capacity by 40% by March 2008, the division has obtained allotment of land from MIDC admeasuring approximately 42 acres at Sinnar near Nashik.