Steel Exchange India Limited announces Q2 results FY 12 - 13

Steel Exchange India Limited announces Q2 results FY 12 - 13

New Delhi, February 11, 2013: Steel Exchange India Limited (SEIL), one of the largest manufacturers in the private sector in Andhra Pradesh, reported its quarterly profit & revenue numbers with a 70% rise in revenue over the preceding quarter and a net profit of Rs. 5.85 cr for the quarter ended December 31, 2012 .

The company saw its net profit touching Rs. 5.85 cr for the Second Quarter over the profit of Rs. 3.86 cr for the corresponding period last year. Sales however were at Rs. 304.89 cr compared to Rs. 355. 22 cr for the corresponding period last year.

Highlights

Description	Quarter ended 31st Dec’12 (Rs. cr)	Quarter ended 31st Dec’11 (Rs. cr)
Net Sales	304.89	355.22
Profit after tax	5.85	3.86
EPS - Basic	1.13	0.83

Commenting on the occasion, Mr. B. Satish Kumar – Managing Director, Steel Exchange India Limited said, “We are satisfied with our performance keeping in view the prevailing market conditions and lack of power. We promise to strive hard and perform much better in the coming quarters & the next fiscal. With the recent launch of our captive power plant, the Company will have substantial savings in costs apart from assured supply of power. These savings will be reflected under improved margins in the coming quarters. We thank our shareholders for their continuous support and hope to receive the same in future.”

About Steel Exchange India Limited

Steel Exchange India Limited was incorporated in Feb’1999 as Pyxis Technology Solutions Limited (PTSL). The Company is promoted by Shri. B. Satish Kumar along with his brothers, friends and relatives. Pyxis Technology Solutions was a software Company focused on development of business to business specific online solutions. The promoters were originally into trading of steel & steel related products under the banner of Vizag Profiles a well known group in Vishakhapatnam. After gaining substantial experience in steel trading, the promoters decided to launch a portal based steel trading platform. In December 1999 M/s Steel Exchange India Limited (SEIL) was incorporated as a 100% subsidiary of PTSL. M/s Pyxis approached the Capital Markets with its maiden Initial Public Offering in June 2000.

As the demand for steel started growing from 2000 onwards, the promoters gradually ventured into steel manufacturing as a backward integration of their strong steel retail & trading business by acquiring Simhadri Steels, a company having a rolling mill at Vizag and setting up an ingot manufacturing unit at Kothapeta in 2004.

Under a Scheme of Amalgamation approved by the Members of the Companies, M/s Steel Exchange India Limited (Subsidiary) and M/s Simhadri Steels Private Limited (a company acquired by the group) were merged with M/s Pyxis Technologies Solutions Limited and the name of the Company was changed to M/s Steel Exchange India Limited. The equity shares of the company are listed on the Bombay and Kolkata stock Exchanges. The main objective of company became manufacture of steel and trading in steel and related products. Steel Exchange India Ltd now owns the entire Steel business of the group.

The group has a history of acquiring sick companies and turning them around into successful ventures. In 2008 the company had joined as a strategic investor in the rahabilitaion of GSAL (India) Ltd a sick company referred to the BIFR and had a sponge iron unit of 220,000 Mts capacity per annum. Since joining and as part of the rehabilitation, the company set up downstream arrangements namely a 240,000 Mts p.a billet unit and 225,000 Mts rolling mill in 2010. The rehabilitation scheme was approved by the BIFR in Aug 2012 and as per the package, GSAL is now merged with Steel Exchange India Limited. With the setting up of the 60 MW power plant, the company has successfully set up an integrated streel manaufacturing hub.