The world's largest steel maker Steel Authority of India Ltd (SAIL) on Thursday reported a 12% year-on-year growth in net profit at Rs. 543 crore for the quarter ended September 30, compared to Rs. 485 crore in the same quarter of the previous fiscal, on the back of high forex gains.

The company made forex gains of Rs. 42 crore during the July-September quarter due to volatility in dollar-rupee exchange rates against Rs. 509 crore a year ago.

Sales fell by 1.6% at Rs. 10,663 crore during the quarter from Rs. 10,837 crore in the same quarter of the previous fiscal year.

Expenses increased marginally to Rs. 10,114 crore during the second quarter, while tax outgo declined nearly 11% at Rs. 245 crore.

However, its other income (mainly interest earned on cash deposits) fell by 54% at R226 crore during the quarter under review.

"Higher production along with improvement in key economic parametres gave us profitability gains," said CS Verma, chairman, SAIL. "We are optimistic about Indian steel industry's growth."