The board of ductile iron pipe maker Srikalahasti Pipes Ltd., (SPL, formerly Lanco Industries Ltd.), has approved a capital expenditure of ₹125 crore as part of its expansion plan, said a top official.
“Our board has approved a capital expenditure of ₹55 crore for setting up two units of 9 MVA furnaces to produce ferro silicon and silico manganese,” said G.S. Rathi, whole-time director, SPL. “This facility will be commissioned by the second quarter of FY20.”
He said 50% of the ferro silicon produced would be consumed internally, and the balance, along with all of the silicon manganese would be sold in the domestic market or exported.
ADVERTISEMENT
He said the project was intended to help reduce cost and was part of a backward integration initiative to achieve self-reliance in sourcing major and critical raw materials.
Besides, the board approved an investment of ₹70 crore towards an additional annealing furnace, establishing 1,200 mm dia production facilities and other infrastructure in the plant.
“These projects would be funded out of internal accruals and the proceeds of the Qualified Institutional Placement issue.”
ADVERTISEMENT
Regarding the installation of fourth coke oven battery along with additional boiler in the captive power plant, he said it was in advanced stage of completion and expected to be in place by end June.
Results
Meanwhile, the company posted standalone net profit of ₹45.91 crore for the fourth quarter ended March 31, 2018 against ₹44 crore in the year-earlier period. Total income fell to ₹351 crore from ₹444.47 crore due to volatility in the global coal prices, increase in the prices of raw materials and Goods and Services Tax.
The board declared 60% dividend for the year.