Kalyani Forge back on track, net profit rises to Rs. 2.77 cr in Q1

August 17, 2013 12:59 pm

Kalyani Forge Ltd., one of India’s oldest and most established manufacturers of precision forged and machined components, has posted a recovery in its net profit at Rs. 2.77 crore for the quarter ended June 30, 2013 as compared to a net loss of Rs. 16 lakh in the previous quarter ended March 31, 2013. This follows a growth of 8.54 per cent in the company’s total income from operations at Rs. 56 crore as compared to Rs. 51.63 crore in the previous quarter ended March 31, 2013.
While other income remained stagnant, cost of finance declined to Rs. 1.12 crore in the quarter as compared to Rs. 1.21 crore. The Earning Per Share (EPS) for the April-June quarter was Rs. 7.61 as compared to Rs. 0.44 for the previous quarter ended March 2013.
Expressing satisfaction over the recovery in financial results, Viraj Kalyani, Executive Director, Kalyani Forge Ltd., said, “Though the financial results show an improvement over previous quarter, it has a reflection of economic slowdown. We could achieve 90 per cent of our aggressive annual operating plan for Q1. There was an improvement on the working capital front and better realisation of exchange earning in addition to reduction in inventory and decreased in cost of bank finance for working capital.”
Kalyani Forge is concentrating on process improvements and all removal of non-value adding activities through lean management systems as a strategy to cope up with the slow economic environment. The company has initiated a transformation in business process and management with fresh ideas and plans to become a world-class manufacturing company by adopting a strategy to reduce waste and grow aggressively.