SAIL net dips 11.5% on raw material costs

Steel Authority of India Limited on Thursday reported a 11.5 per cent dip in net profit at Rs 1,177 crore for the April-June quarter as higher cost of raw materials and increased provision for employee cost ate into its profits. The company's sales turnover also grew by just 2 per cent at Rs 9,931 crore. HT reports.

Steel Authority of India Limited (SAIL) on Thursday reported a 11.5 per cent dip in net profit at Rs 1,177 crore for the April-June quarter as higher cost of raw materials and increased provision for employee cost ate into its profits. The company's sales turnover also grew by just 2 per cent at Rs 9,931 crore.

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During the quarter, SAIL's cost on employees increased due to additional provision of Rs 299 crore towards employee-related benefits, compared to net reversal of Rs 199 crore in 2009-10 towards provision for revision of salaries and wages.