The Hindu Business Line : Ashapura Minechem net doubles; to pay 150%

Mumbai June 16 Ashapura Minechem Ltd, a multi-mineral solutions provider, has reported a 103 per cent increase in net profit to Rs 38.48 crore for the quarter ended March 31, 2007 against Rs 18.93 crore in the same quarter last year. Total income for the fourth quarter rose 46 per cent to Rs 320 crore from Rs 219 crore.

For the financial year 2007, net profit jumped 99 per cent to Rs 130 crore against Rs 78 crore recorded in the previous year. Total income was Rs 1,277 crore (Rs 855 crore) and turnover stood at Rs 1,272 crore (Rs 854 crore).

The company has declared a dividend of Rs 3 (150 per cent) per equity share with a face value of Rs 2. The board of directors will meet on June 27 to consider issuing bonus shares to investors.

The company derives almost 95 per cent of its revenue from exports. It has reported a surplus of Rs 400 crore at the end of FY 2007.

Future proposals

On future plans, Mr Chetan Shah, Managing Director, said: "the environment study for a Rs 2,500-crore alumina refinery project in Kutch is over and it should receive government clearance by September-end. The project is a joint venture with a Chinese company Qingtongxia Aluminum Company (QTX) which will buy 75 per cent of the total production when the factory goes on stream in next two years."

Ashapura will invest Rs 400 crore and QTX an equal amount, while the rest will be raised through debt, he added.

The company has acquired Kaolin reserves in Kerala and is working on setting up processing units to produce hydrous calcined, hydrous non-calcined, dry calcined and spray dried kaolin, which finds usage in industries such as paper, paint, rubber and detergent.

It is also looking to acquire mining and mineral processing companies in India. ``We may buy mining and processing companies in India. Initially, we plan to buy 40-50 per cent stake and gradually raise the stake over time,'' Mr Shah said, without divulging any further details.

Ashapura also operates in Malaysia, Nigeria and European markets through its joint ventures.

Expressing concerns over rising rupee and increasing freight cost, Mr Shah said freight charges had gone up by over 20 per cent in the last one year. However, he was confident that the government would take necessary action to arrest the rising rupee so that exporters' interests are taken care of.