SAIL net up 25 pc to Rs 2,377 crore
State-owned Steel Authority of India Ltd says its net profit in the latest quarter rose 25 per cent from a year ago, helped by robust demand and rising prices.business Updated: May 16, 2008 22:47 IST
State-owned Steel Authority of India Ltd on Friday said its net profit in the latest quarter rose 25 per cent from a year ago, helped by robust demand and rising prices. SAIL's net profit during the Janaury-March period rose to Rs 2,377 crore compared with Rs. 1,902 crore in the same period a year ago, the company said. Quarterly sales rose 30 per cent to Rs 15,457 crore.
Cost cutting measures and higher steel prices helped offset much of the impact of increased costs of raw materials such as iron ore and coking coal.
"Around 72 per cent contribution in our profitability during the (last fiscal) year is due to internal measures and only 30 per cent is due to increase in steel prices," said Chairman S. K. Roongta. "For the first time last year, we became a net importer of steel and a double digit rise in domestic consumption has led to a demand supply mismatch with production not keeping pace with consumption," Roongta said. "We are committed to making more steel available and even though we do ot have any short term expansions, we have produced more than our rated capacity and will continue to do so."
For the fiscal year ended March, SAIL's net profit stood at Rs 7,537 crore, up 21.5 per cent from a year earlier. Sales rose xx per cent to an all-time high of Rs 46,261 crore in 2007-08.