Bhushan Steel today reported a 70 per cent drop in September quarter net profit at Rs 60 crore due to higher finance costs and said it will raise up to Rs 1,000 crore through a rights issue.
The city-based company had clocked Rs 201.51 crore net profit in the second quarter last fiscal, it said in a BSE filing.
In the July-September 2013 period, net sales of the company came down to Rs 2,267.49 crore from Rs 2,554.25 crore a year earlier. Total expenses also fell to Rs 1,803.78 crore from Rs 2,011.57 crore.
Higher finance costs appeared to have hit the bottom-line hard as they went up to Rs 389.24 crore in the quarter under review from Rs 281.58 crore in the year ago period.
In a separate filing, Bhushan Steel said its Board has approved raising up to Rs 1,000 crore through a rights issue.
"...Board of Directors has considered and approved ... to raise further equity shares for sum not exceeding Rs 1,000 crore by way of right issue at such premium as may decided by committee constituted by the Board for the purpose." it said.
Shares of the company closed at Rs 486.60 apiece, up 0.26 per cent.
Regarding the explosion that had happened yesterday at its steel plant at Meramandali in Odisha, the company said," The incident led to demise of one person and four persons got injured out of which one is critical."
"Management is taking all efforts to take care of the injured person(s) and their families," it said.