Srikalahasthi Pipes plans Rs. 100 cr capex

Srikalhasthi Pipes Limited has approved a capital investment of Rs 100 crore for expansion of its existing mini blast furnace located in the Chittoor district of Andhra Pradesh.

This investment will increase the ductile iron pipe production capacity of the company from 2,25,000 tonnes per annum to 2,85,000 tpa and includes cost reduction measures covering the pulverised coal injection plant and stave cooling system.

GS Rathi, Wholetime Director, Srikalahasthi Pipes, in a statement to BSE has informed that in view of the upcoming water supply projects in Telangana to support the water grid, Amaravati capital development projects, infrastructure projects in the proposed 100 smart cities and 500 Amrut (Atal Mission for Rejuvenation and Urban Transformation), and various urban development and rural water supply projects, the company was hopeful of comfortable order position during the coming years.

The company posted a net profit of Rs 37.34 crore for the second quarter ended September 30, 2015 as against a net profit of Rs 18.33 crore for the corresponding quarter last year.

The company posted a total income of Rs 294.69 crore for the second quarter as against Rs 257.13 crore for the same period last year.

HBL