Will achieve 15% revenue growth in FY14: Gallantt Ispat

Moneycontrol Bureau

Gallantt Ispat, maker of thermo-mechanically treated (TMT) bars is confident or achieving 15 percent revenue growth in FY14 on improved demand from railways, construction and infra space.

The firm’s Q1 net profit jumped multi fold to Rs 5.57 crore as against Rs 0.63 crore year-on-year. Sales jumped over 3 percent Y-o-Y to Rs 113.84 crore.

"Demand is gathering pace from railways and various other segments and this will act catalyst of growth in long term. Real estate activities are also picking up. Steel consuming sectors will offer tremendous opportunities to companies like Gallantt Ispat in times to come, " said chairman and managing director Chandra Prakash Agrawal in an interview to moneycontrol.com.

He further said the firm has a wide supply chain network that helps cater to bulk order within certain timeframe.

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According to World Steel forecast, steel demand will escalate to 9.4 percent in current year, up from 6.9 percent in 2012.

However, according to data from the steel ministry, demand rose only 0.2 percent in the quarter gone. Also, steel consumption grew at the slowest pace in past five years during the period.

Steel demand rose only 3 percent in FY13, more than half of what the government had expected it to be.

shaheen.mansuri@network18online.com