ET reported that the results for the April to June quarter of 2009-10 have brought some cheer to metal companies especially steel producers as higher domestic demand, improved prices as compared to previous quarters coupled with a fall in input costs have helped the sector report better numbers.
As per report, an analysis of the April to June quarter results of 150 metal companies reflects that
1. Decline of 12% in aggregate net sales
2. Net profit fell by as much as 30% YoY. The drop in net profit is almost half of what it was in the March 2009 quarter.
3. Prices of different metals during the June 2009 quarter were almost 30% to 50% lower than the April to June 2008 quarter, when the prices were at their historical highs.
4. Though a higher domestic demand resulted in a spurt in sales volumes, overall sales figures appear to be on the lower side compared with the same period last year.
5. With the end of last year's contracts and lesser use of high cost inventory, raw material costs, for the first time, declined sharply, resulting in improved profitability for steel companies
(Sourced from www.steelguru.com)
Tuesday, September 1, 2009
steel makers post better results for April to June quarter
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