SAIL net doubles to Rs 1,676cr
New Delhi, Jan. 27: Cheap raw material prices and increased sale of value-added products helped Steel Authority of India (SAIL) nearly double its profit.
The company reported a net profit of Rs 1,676 crore for the October-December quarter.“Apart from lower cost of imported coal and growth in sales, increase in the production of value-added steel by 25 per cent, improved techno-economic parameters and several other cost-efficiency measures contributed to the strong profit,” said the SAIL chairman, Mr S.K. Roongta. The increase in profit was also aided by low base last year as this was the period when the financial crisis had hit the world resulting in a fall in the demand.
The company expects the steel prices to remain stable in near future. “Unless there’s a huge rise in input costs following fresh negotiations for long-term contracts in iron ore and coking coal, expected to begin on April 1, prices should remain stable at this level,” said the public sector steel major said.
SAIL is undertaking a massive Rs 70,000-crore expansion to take capacity to 23.2 million tonnes from the 14 million tonnes now. The state-run company is planning a Rs 12,000-13,000 crore capital expenditure in the next financial year.
“Though we have not yet arrived at a figure, we can have a capital expenditure of 12,000-13,000 crore,” Mr Roongta added.
Age Correspondent
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