India’s largest steel maker Steel Authority of India Ltd on Tuesday beat market expectations by posting a 3% year-on-year growth in net profit at Rs. 1,578 crore in the January-March quarter and a 12.6% growth in turnover at Rs. 14,785 crore. Analysts were expecting a 16-30% fall in profit during the quarter.
The firm’s profits for the full fiscal year 2011-12 were, however, lower by 28% at Rs. 3,543 crore as a combination of high coking coal prices and rupee depreciation hit bottomline. Its turnover during the year grew by 7% to Rs. 50,348 crore, breaching the Rs. 50,000-crore mark for the first time.
“Higher prices of coking coal resulted in increased expenditure of Rs. 4,000 crore during the year while adverse currency fluctuation cost us another Rs. 900 crore,” said CS Verma, chairman, SAIL.
“India cannot remain insulated from what is happening in Europe and the US but we would remain a demand centre,” he added.