Bolstered by strong demand, the state-controlled Steel Authority of India Ltd (SAIL) has registered a 72 per cent jump in net profit to Rs 1,902 crore in the fourth quarter ended March 2007, compared with Rs 1,103 crore in the corresponding period of previous year.
The company’s revenues increased by 14 per cent to Rs 11,534 crorein the quarter from Rs 10,102 crore in the year-ago period. After adjusting for excise duty, the company’s revenues reported a growth of 17 per cent to Rs 9,984 crore from Rs 8,774 crore in the same period of the last year, SAIL said on Monday.
In the full year 2006-07, the company recorded a 55 per cent increase in net profit at Rs 6,202 crore and declared a 31 per cent dividend. During the period, the company achieved a record annual turnover of Rs 39,189 crore, an increase of 21 per cent over Rs 32,280 crore in the previous financial year. Profit-before-tax increased by 65 per cent to Rs 9,423 crore.
SAIL's shares rose 4.25 per cent to Rs 144.85 per share after the results. The stock has risen 66 per cent since January this year on the back of strong demand for steel.
Modernization and expansion schemes totalling Rs 23,500 crore were cleared by the board during the year, Chairman SK Roongta said.
The total value of projects already taken up for ordering or implementation has gone up to Rs 38,000 crore. In addition, the company also decided to expand the capacity of the power plant at its Bokaro Steel Plant by 500 MW in a joint venture with the Damodar Valley Corporation (DVC), the chairman said.
Apart from strong demand for steel, a market-driven product-mix, higher value-added special steel production and improved techno-economic parameters helped SAIL in 2006-07, Roongta said.
However, he cautioned there was not much room for a rise in steel prices. "Steel prices are at a firmed up level, I don’t see much scope for a further increase," he said.