BOC India Ltd, a member of The Linde Group, has announced very positive financial results for the second quarter of 2009, ended 30th June 2009.
The company clocked net sales of Rs.213.08 crores for the second quarter, which is an increase of 57% over the corresponding quarter in 2008.
The gases business registered a turnover growth of 21% over the corresponding quarter in the preceding year and the turnover of the Project Engineering business recorded a jump of around 136% quarter on quarter.
The growth in the gases business during the quarter was mainly driven by increased revenues from the tonnage business as a result of the new pipeline gas supplies by the company’s 1800 tpd plant to JSW Steel at Bellary.
Revenues from merchant business also grew 4% driven mainly by medical, electronic, specialty and other compressed gases.
The Project engineering business recorded significantly higher billings of its projects, mainly due to the Rourkela and Bhillai steel plants.
The company recorded Profit after interest but before exceptional items of Rs. 20.57 crores compared to Rs. 25.61 crores in the corresponding quarter in 2008. Margins continued to remain under pressure during the quarter due to the impact of subdued demand.
During the quarter, the company also took an exceptional charge of Rs.5.30 crores towards amounts paid/payable under a voluntary separation scheme to enhance productivity, benefits of which are expected to accrue in the coming quarters.
Commenting on the financial results, Mr. S K Menon, Managing Director of BOC India said, $quot;The company’s tonnage business performed well with the 1800 tpd plant at Bellary achieving full ramp up during the quarter under review.”
“Both the 1800 tpd plant and 1290 tpd plant have been performing very well. Although margins were under pressure, the company is working on efficiency improvement and cost reduction initiatives, which are expected to bear fruit in the coming quarters.”