Hurt by Power Shortage

Hurt by Power Shortage Kumaran Pola FERRO ALLOYS CORPORATION'S net sale at Rs 213.97 crore during the year ended March 31, 1990 showed a nominal increase of 2 per cent on annualised basis over the preceding nine-month period. While the operating profits on annualised basis did not show any change, the net profits of the company showed a decline by 2 per cent. The expenses-to-sales ratio remained steady at 0.92:1 in both the years. The employees' cost spurted by 26 per cent on annualised basis due to the substantial increase in the salaries and other benefits consequent upon the settlement arrived at with the workers' union. According to the directors, the power supply in Andhra Pradesh was considerably lower during the year which adversely affected the production of various alloys in the ferro alloys division. Production was down by more than 26 per cent during the year In addition to power cuts which was almost 60 per cent during the first quarter of 1990, there were increases in the power tariff. The Orissa State Electricity Board revised the tariff twice during the year. Electricity is consumed by power- intensive ferro alloys industry as a raw material and electricity charges constitute a major item of the cost of production. The company has been representing to the authorities to secure power at reasonable prices. The cost of major raw materials like chrome ore and low ash metallurgical coke also went up by about 40 per cent during the year.