Usha Martin Jan-March net rises 29 pct

KOLKATA (Reuters) - Steel wire rope maker Usha Martin on Tuesday posted a 29 percent rise in net profit in January to March quarter on higher sales of value-added products, a top official said.

The firm posted a net profit of 505.3 million rupees on net sales of 6.72 billion rupees in the quarter to March 31.

"Demand for value-added speciality steel products helped us grow," Managing Director Rajeev Jhawar said.

The firm is doubling speciality steel making capacity to 700,000 tonnes in FY09, and has plans to make 1 million tonnes of the product by FY10, he said.

"We will add value to 55 percent of the steel we make."

Usha Martin expects to maintain operating margins above 20 percent in 2008/09 even if steel prices remain at current levels, Jhawar said.

Shares of the firm ended 2.87 percent up at 95 rupees in a weak Mumbai market.

(Reporting by Tamajit Pain)