SAIL Q1 net up 23 per cent at Rs 1,386 crore

The sales turnover of the company for the quarter under review grew by 29 per cent at Rs 8,412 crore as compared to Rs 6,520 crore in year ago quarter.

State-run Steel Authority of India Ltd (SAIL) on Friday reported a 23 per cent increase in its profit after tax for the quarter ended June 30, at Rs 1,386 crore as against Rs 1,126 crore in the corresponding period last fiscal.

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Riding high on encouraging financials in the quarter, SAIL board also gave an in-principle approval to six capex plans involving an expenditure of Rs 11,000 crore.

The sales turnover of the company for the quarter under review grew by 29 per cent at Rs 8,412 crore as compared to Rs 6,520 crore in the year ago quarter.

The company's quarter on quarter steel production grew by 9 per cent at 3.1 million tonnes and sales grew by 20 per cent in the same period at 2.45 million tonnes.

"We achieved the improved financial performance despite a 27 per cent increase in imported coking coal," the company's outgoing Chairman VS Jain said.

The company reduced its borrowings from Rs 4,298 crore on March 30 to Rs 4,000 crore in the quarter. The interest outgo also dipped in the quarter to Rs 94 crore.

SAIL would invest Rs 9,592 crore in modernisation and capacity expansion of the recently merged entity, Indian iron and Steel Company (IISCO).

"The company would invest Rs 9,592 crore in IISCO in its modernisation and capacity expansion to 2.7 mtpa. Projects worth about Rs 6,000 crore are currently being executed in the current quarter," Jain said.