Chennai: The city based forging major El Forge Limited has closed the FY 2004 with a turnover and profit after tax of Rs58 crore and Rs1.28 crore respectively. During FY 2003 the company logged a turnover of Rs 58 crore and a net profit of Rs14 lakh.
El Forge specializes in forged auto components like those required for engines, transmissions, steering and suspension, brake assembly, chassis, etc. for four and two wheelers.
According to V Srikanth, executive chairman, "The company has taken several measures on the manufacturing end to become more competitive in delivering increased range of forgings to the automobile industry. With the growth in the automobile industry seen in the last few quarters, the Company's order book position is comfortable to show the growth of 40 per cent in the next financial year."
He added that as a part of the restructuring exercise the company has been able to rationalise its capital assets by relocating one of the units and consolidating the same.
El Forge's initiatives for improvement in the productivity and the quality consciousness has sharpened the delivery systems and reduced conversion costs by 5 per cent over the years.
Domestic market for forgings is showing the signs of improvement in the current year and the Association of Indian Forging Industry has estimated growth of 8 per cent in the truck segment, 10 per cent in the car segment and 5 per cent in the tractor segment.