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The ?255-crore expansion programmes of Srikalahasti Pipes Ltd.’s (SPL) mini-blast furnace (MBF) and ductile iron (DI) pipes have been delayed by more thanover six months due to COVID-19 and may now be completed by June 2021. “Most of the machinery and equipment in connection with new MBF and DI Pipes expansion projects are to be imported. Owing to COVID-19, there has been a delay of about six months in project execution,” said G.S. Rathi, whole time director, SPL. Further, due to the rising spread of COVID-19, it is anticipated the schedule of these projects may get further affected, due to a delay in the receipt of machinery, erection and commissioning, engineers visit due to visaVISA regulations/protocols, resulting in further delay in the completion of these projects, he said.
Regarding execution of projects, he saidinformed that the commissioning of facilities such as cement lining machine VI, sand blasting system, gasket storage system and 15 MT cranes in connection with the project relating to capacity addition of DI pipes have been completed.
Moreover, SPL, which had lost more than a month’s production due to the suspension of the operations following the nationwide lockdown, is hopeful of getting limping back to normalcy during the second quarter of FY21.
Asserting that SPL had a comfortable order book for supply of DI pipes, he said during the times of a pandemic like this, safe and hygienic water supply played an important role. DI pipes were the safest and suitable for transportation of water not only in urban cities but also in rural India and hoped the Centre and State governments would continue to give priority in respect of the ongoing and future water supply, sewerage and irrigation projects, he said.
Meanwhile, SPL net profit for the fourth quarter ended March 2020 rose to ?50.73 crore from ?35.83 crore in the year-earlier period on lower raw material cost, higher sales realisation with an optimum product mix coupled with various cost reduction measures already implemented.
During the period under review, the production and sales of DI pipes stood at 2,93,491 tonnes and 2,85,848 tonnes respectively. In spite of suspension of operations from March 24, the company achieved almost 100% of its rated capacity of DI pipes.
The board recommended a dividend of ?7 per share against the ?6 per share paid earlier. |
