The Hindu : Business : Global crisis to impact VISA Steel

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Global crisis to impact VISA Steel

Special Correspondent

Company setting up a second ferrochrome unit in Orissa

KOLKATA: Having registered a 115 per cent jump in its second quarter revenues, VISA Steel is now bracing itself to get impacted by the global financial crisis, a sharp correction in commodity prices and slowdown in demand.

The company, which is part of the Rs. 4,000-crore VISA Steel group, produces pig iron, low ash metallurgical coke, ferrochrome, sponge iron and power. The group also has interests in international trading, shipping and logistics. During the second quarter of 2008-09, the company clocked revenues of Rs. 331.10 crore which was 115 per cent higher than the sane period the year before and a pre-tax profit of Rs. 34.90 crore. This performance came on the back of a doubling of LAM (low ash metallurgical) production to 82,735 tonnes and a huge increase in ferrochrome production.

However, despite these impressive numbers, global financial crisis looms over the steel company as all others. According to Vishal Agarwal, Managing Director, “due to the global financial crisis, sharp correction in commodity prices and slowdown in demand, the performance in the next two quarters may get adversely affected.” The company is setting up a second ferrochrome unit in Orissa in joint venture with Baosteel Resources, China, and VISA Comtrade Switzerland.

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