Millennium Post
Business

As economy slows, SAIL speeds up profit by 10%

The company registered a 10 per cent growth in its profit after tax (PAT) at Rs 533 crore in third quarter of the financial year 2014, which went up from Rs 484 crore in the corresponding period last year.

 SAIL chairman CS Verma announced the company's total turnover at Rs 12,716 crore which was up by 8 per cent in comparison to Rs 11,801 over the same period last year.  The total sales of steel by SAIL stood at 2.94 million tonnes which was up by 7 per cent on year to year basis. SAIL's capital expenditure during the quarter stood at Rs 2,774 crore which represented an increase by 30 per cent over over tha last year.

 C S Verma  further added, 'The increase in sales turnover achieved by SAIL, despite flat steel market, is an indication that the company is well-placed to meet any market situation. Going forward, we are confident that the product and process improvement currently underway in SAIL as a result of modernisation will bring in greater returns on our investment.'

 SAIL plants continued to perform robustly, the company achieved the highest ever third quarter production of value added steel at 1.35 million tonnes (MT) in comparison to 1.23 MT in the corresponding period last year. Production of hot metal, crude steel and saleable steel each grew by 4 per cent each during the quarter, at 3.72 MT, 3.48 MT and 3.17 MT.  Board members of SAIL approved the interim dividend for its shareholders at 20.2 per cent of the company's paid-up capital, as against the interim dividend of 16 per cent last year.

The cumulative net worth of the company increased from Rs 41,025 crore as on 31 December to 2013 to Rs. 43,189 crore as on 31 December 2013. Profit after tax for the 9-month period of April-December 2013 was Rs 2,164 crore, recording a growth of 25.5 per cent compared to the last year’s figure of Rs 1,724 crore.

The company head also announced that till December 2013, packages worth over Rs 14,000 crore have been operationalised in different plants/units of SAIL. Orders worth Rs 58,700 crore were placed till December 2013. SAIL also announced the completion of its major project, India’s largest blast furnace, that is, high volume 4060 m3 was blown-in at Rourkela in August 2013. In addition, Sinter Plant-3, new Slab caster at the steel melting shop-II and continuous caster were also completed in the plant.

Inter-ministerial panel to discuss coal-power linkages on 21 February

New Delhi:
An inter-ministerial panel which was to meet on 19 February to review the status of existing coal supply agreements with the power sector will now meet on 21 February. “The meeting of the Standing Linkage Committee (Long-Term) for power/sponge/cement sectors to review the status of existing coal linkages/LoAs (letter of assurances) and other related matters will now be held on 21 February, 2014 instead of 19 February,” according a Coal Ministry memorandum. However, no reasons were given by the Ministry for extending the date of meeting. Amid continuous delays, the Cabinet Committee on Investment had earlier said that timelines for signing fuel supply pacts for power projects of 78,000 MW capacity should be met. State-owned Coal India has so far signed 157 fuel supply agreements with power producers for a capacity of 71,145 MW and has missed two deadlines. Earlier, Coal Minister Sriprakash Jaiswal had said that the remaining supply agreements would be signed once technical glitches are addressed.
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