Calcutta, Sept. 26: Ispat Industries Ltd (IIL), the flagship of the Mittals, is finally coming out of the woods.
The loss-making steel maker is expected to post net profit in the second quarter of the current fiscal, thanks to the rise in price realisation.
At the company’s annual general meeting here today, chairman and managing director Pramod Mittal said the steel market is looking up after a prolonged recession and if the situation continues, the company will end up with a stronger bottomline this year.
The company is expected to generate a cash profit of Rs 160 crore during the second quarter of the current financial year. Mittal further pointed out that the second quarter began with hot rolled prices standing at $ 280, which are now hovering at around $ 290.
“The prices are yet to get completely corrected, but at least the current levels are not as bad as a few months back,” he said.
Mittal further said that Ispat Energies Ltd is set to finalise its financial closure by December this year for its 2 x 55 MW power plant.
The plant, which needs an investment of Rs 390 crore, will help the steel company cut its power cost to a large extent. The plant will be commissioned in 18 months time from the zero date.
IIL, which is one of the largest hot rolled steel makers, also plans to jack up its production capacities in view of the current demand growth.