May 11, 2012

Usha Martin Ltd reported nearly 60 per cent drop in net profit to Rs 15 crore in the January-March quarter. The lower profit came on the back of 11 per cent sales growth to Rs 954 crore, during the period.

“We could not pass on the impact of input cost increase of about Rs 100 crore to our customers. This has affected our margins,” Mr Rajeev Jhawar, Managing Director, Usha Martin said.

Net profit for the year ended March 31, 2012 dipped by almost 97 per cent to Rs 4 crore (Rs 137 crore).

Margins could be under pressure in 2012-13 as well, he said as weak demand makes price hikes unsustainable.