Rajeev Jhawar in Calcutta on Tuesday. Picture by Kishor Roy Chowdhury

Calcutta, July 31: Specialty steel producer Usha Martin has posted an 86.48 per cent decline in consolidated net profit at Rs 3.47 crore for the quarter ended June 30, 2012 against Rs 25.67 crore in the same period last year.

On a standalone basis, the Calcutta-based company reported a net loss of Rs 10.86 crore against a profit of Rs 7.64 crore in the first quarter of the previous year.

The company said the fall in net profit came on the back of a rise in interest rates, coke and raw material prices, fall in demand from the automotive sector and depreciation of the rupee.

“High steel prices have also affected margins. But all our subsidiaries, including Usha Siam Steel Industries in Thailand have made reasonable profit, which should be back in full capacity by the end of the quarter,” said Rajeev Jhawar, managing director, Usha Martin Ltd.

Net sales on a consolidated basis grew 11 per cent to Rs 846.09 crore against Rs 762.55 crore last year. On a standalone basis, net sales grew 20 per cent to Rs 728.48 crore from Rs 607.58 crore in the same period last year.

Jhawar also said Usha Martin’s operating subsidiaries had continued to grow in Europe and the US. Overseas, the company’s market share also grew in wire ropes.

Meanwhile, the company’s capex plans are expected to be commissioned in phases through fiscal 2012-13 and 2013-14. Usha Martin has commissioned a 30MW power plant in May and a DRI plant of 0.25MT a year capacity in January, using 40 per cent of the Rs 1,200 crore allotted for investment in various projects.