Jan. 24: Gujarat NRE Coke Ltd, the largest met coke manufacturer in the country, has reported a 58.3 per cent decline in net profit for the quarter ended December 31, 2005. The net profit stood at Rs 12.5 crore at the end of December against Rs 30 crore in the same period last fiscal.

The company’s earnings slipped despite a 6.74 per cent growth in sales during the period. The sales revenue stood at Rs 96.5 crore at December end, up from Rs 90.4 crore in the corresponding period previous year.

This, in other words, means that Gujarat NRE’s operating margin has declined during the last quarter of the current financial year which had pulled down the quarterly earnings of the company.

Gujarat NRE’s operating margin during the December quarter this fiscal went down to 18.7 from 46.9 per cent.

According to the company, the third quarter was very bad for the entire met coke industry as domestic prices continued to fall.

“From the level of Rs 11,000 per tonne, the price has come down to Rs 7,000 a tonne. As a result, we were badly hit,” said Sumit Khetan, president, Gujarat NRE Coke Ltd.

Even on a quarter-on-quarter basis, met coke price lost Rs 1,000 every tonne during the last three months of the last calendar. The met coke price was Rs 8,000 a tonne in September.

Gujarat NRE, however, hoped the trend would reverse soon and the fourth quarter would be better.

“The worst is behind us,” Khetan added.

The company has invested in captive coal mines in Australia. The backward linkage will start bearing fruits once the production from Down Under stabilises.

Gujarat NRE Coke stock traded marginally up on bourses today, gaining by Rs 1.30 or 1.44 per cent to close at Rs 91.75.

ICI earnings

Paints and chemicals manufacturer ICI India Ltd today posted a 34.52 per cent decline in net profit at Rs 8.27 crore for the quarter ended December 31, 2005 compared with Rs 12.63 crore during the same quarter in 2004-05.

However, the company’s total income (net of excise) increased to Rs 260.39 crore for the reporting quarter from Rs 220.48 crore in the year- ago period, the company informed the Bombay Stock Exchange.

Its operating profits, however, increased to Rs 40.22 crore in the reviewed quarter from Rs 26.31 crore in same period last fiscal.

Varun Shipping

Varun Shipping Company Ltd today declared a two-fold increase in net profit at Rs 52.72 crore for the quarter ended December 31, 2005 compared with Rs 23.24 crore clocked in the corresponding period last fiscal.

The total revenue of the company during the period grew by 82.15 per cent to Rs 189.09 crore from Rs 103.80 crore in the year-ago period, the company informed the National Stock Exchange.