Cost-Break-up-of-Foundries

Cost Of Break-up Of Indian Foundries

We have collected this cost data from the annual reports of major public limited steel making companies and foundries and then averaged it out for the benefit of the experts. In case if you have any comments, then please Contact Us

Heading

% Cost

Net Sales Income	100.00%
Material Costs	48.09%
Other Expenses	29.21%
Employee Costs	17.12%
Depreciation	04.74%
Finance Cost	03.50%
(Loss)	– 02.37%

From this Foundry operations cost break-up, we can conclude that for sales of every Rs. 100.00, the cost of castings produced in the Foundries is Rs. 102.67, i. e. an operating loss of Rs. 2.67 or 2.67%. It means that there is some fundamental issues in the working of the foundry operations leading to the cost issues or operating losses. This model cannot run in long run unless it has been rectified.