SAIL's Q2 net up 28%, builds cash for growth
State-controlled Steel Authority of India Limited reports a net profit of Rs 1,443 crore for the second quarter on Monday.india Updated: Oct 30, 2006 19:51 IST
State-controlled Steel Authority of India Limited (SAIL) reported a net profit of Rs 1,443 crore for the second quarter ended September on Monday, up 28 per cent from the same quarter the previous year.
Steel sector analysts said the current financials would allow the company sufficient cash flow to fund its expansion initiatives.
Projects worth Rs 19,000 crore are in various stages of implementation for SAIL, whose board on Monday approved projects worth Rs 700 crore.
Of these, two are for SAIL's Bhilai Steel Plant - the installation of a 650-tonnes-per-day air separation unit and the installation of an electro-magnetic stirrer. Besides, a new coke oven gasholder will be installed at the Rourkela steel plant.
"With this, total 'in-principle' project approvals during the current fiscal have exceeded Rs 14,000 crore and projects for about Rs 19,000 crore are under various stages of implementation," SAIL said in a statement.
SAIL has maintained sustained growth and profitability.
SAIL said it achieved a record first-half net profit of Rs 2,829 crore, a growth of 26 per cent over the corresponding period last year. The second quarter turnover at Rs 9,586 crore represented a growth of 17 per cent over last year.
Revenues in the first half grew 22 per cent to Rs 17,998 crore.
The company's borrowings were reduced to Rs 3,882 crore as on September 30, 2006 from Rs 4,000 crore on the same date last year, improving the company's debt:equity ratio to 0.25:1 from 0.29:1 last year.