Team News Riveting
Raipur, November 14
Chhattisgarh-based Sarda Energy and Minerals Limited (SEML) on Monday reported a 29 per cent slump in the second quarter profit.
The company’s consolidated net profit for the second quarter ended September 2022 or Q2 FY23 fell to Rs 186 crore from Rs 263 crore a year ago, the SEML said in a regulatory filing today. The softening steel prices and higher input costs reportedly squeezed operating profit margins at SEML, the flagship company of Sarda Group, incorporated in 1973.
The diversified company with interest in energy and minerals, SEML’s profit plunged to Rs 359 crore from Rs 431 crore in the second half of the fiscal or H1 FY23, registering a fall of 17 per cent compared to the corresponding period of last fiscal.
The company, which is one of the lowest cost producers of steel (sponge iron, billets, ingots, TMT bars) and one of the largest manufacturers and exporters of ferro alloys in India, also reported total income loss of six per cent to Rs 988 crore in the consolidated total income in Q2 FY23. However, the total income surged 17 per cent to Rs 2210 crore during H1 FY23. The company’s income was pegged at Rs 1857 crore during the period last year.
As part of the expansion plan, SEML is eyeing to enhance the capacity of Gare Palma IV/7 Coal Mine in Chhattisgarh from 1.2 million tonne per annum (MTPA) to 1.8 MTPA, The mining plan for the same had been approved. The company has also received nod for Shahpur West Coal Mine in Madhya Pradesh with extractable reserves of 13.4 MT and production capacity of 0.6 MTPA.
Besides bidding for additional mining assets, the capacity expansion of Coal Washery from 0.96 MTPA to 1.8 MTPA is under process. Further, 24.9 MW of Rehar Hydro Power under execution in Chhattisgarh.
The installation of the furnace has been completed for scaling up ferro alloys capacity expansion from 111 MVA to 147 MVA and is likely to go on stream during the current quarter, ahead of scheduled.
