While the comapny's net sales were marginally higher and other income lower, the depreciation provisions and tax outgo were higher than that during the previous fiscal. Despite all these Electro Steel was able to exceed its own projections made during its public offer in November, 1995.

Total expenditure at Rs 223.11 crore was lower than the Rs 223.63 incurred the previous fiscal, as also interest outgo at Rs 20.18 crore was lower than the previous fiscal's Rs 20.85 crore. Depreciation at Rs 10.02 crore was 40 per cent higher over theprevious fiscal's Rs 7.16 crore. And tax provisions were 23 per cent higher at Rs 9.25 crore (Rs 7.50 crore). On an equity base of Rs 8.06 crore, the earnings per share works out to Rs 47.37. Given the Rs 116.86 crore reserves that the company has, its book value works out to Rs 154.66 crore.

The Electro Steel scrip on the Bombay Stock Exchange (BSE) has appreciated by around 20 per cent to Rs 179 from its June 16 level of Rs 144. Prior to the current rally the scrip on BSE was on a downward spiral since early-May when the scrip touched its 52-week high of Rs 202. However, given the low level of retail holding in the company, which is pegged at 28 per cent, there has not been any substantial rise in the daily trading volumes on this counter.

Against a projected net profit of Rs 19.86 crore, Electro Steel's actual net profit at Rs 38.25 crore was almost double that figure. In line with this, dividend payout was Rs 10 per shares against Rs 4 projected, and book value per share at Rs 154.46 against theprojected Rs 127.17.

Electro Steel is the only company in the country which manufactures drought iron pipes. It also manufactures cast iron pipes, both of which are used for transport of water and sewage. As a backward integration measure, the company has set up a mini-blast furnace (MBF) to manufacture pig-iron, one of its important raw materials. Also the company is setting up a captive power plant based on the surplus gas generated from the MBF.