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SAIL beats global slowdown, steels Q2 sales to Rs 12,934 cr

SAIL beats global slowdown, steels Q2 sales to Rs 12,934 cr
State-owned steel maker SAIL on Thursday a reported 45 per cent dip in net profit to Rs 649.49 crore for the second quarter ended 30 September, 2014-15. Steel Authority of India had clocked Rs 1,180.39 crore net profit in the July-September quarter of last fiscal. Gross sales of the company rose marginally to Rs 12,934 crore in Q2, from Rs 12,802 crore a year ago. Expenses, on the other hand, came down to Rs 10,734 crore from Rs 11,136 crore.

SAIL's profit from ordinary activities before finance costs and exceptional items were, however, higher at Rs 1,107 crore from Rs 553 crore a year earlier. Finance cost rose to 355.78 crore from Rs 218.49 crore a year earlier. During the July-September quarter of the last fiscal, the company had received Rs 1,056.26 crore as one-time gain from Brazilian miner Vale as compensation for non-performance of a contract. During the reporting quarter, SAIL did not have any exceptional gain.

The company registered an EBIDTA (earnings before interest, depreciation, tax and amortisation)  of Rs 1,498 crore for the July-September quarter which is 58 per cent  higher than the corresponding period last year.  

Improvement in performance in EBIDTA was helped by factors such as enhanced production of value added steel, better techno-economic parameters along with improvement in net sales realisation and vast reduction in the input costs.

During the quarter, the national steel company achieved a turnover of Rs 12,934 crore, which is 1 pe cent higher than same period last year.  The networth of the company increased to Rs 43,622 crore as on 30 September 2014, an increase of Rs 956 crore.

'SAIL is focused on commissioning balance modernisation facilities at the earliest and ramping up production from the operationalised units.  It is heartening that capacity addition of SAIL is fructifying at a time when the country is witnessing improved economic sentiments and renewed thrust on infrastructure building, which will lead to increased demand of steel,' said Chairman C S Verma.

SAIL has already operationalised projects/facilities worth Rs 27,500 crore till now. Commencement of integrated operations of 2.5 MTPA new steel plant at Burnpur is slated from November 2014, with the lighting-up of 4060 m3 state-of-the-art blast furnace here.  

This would be the second such large volume blast furnace in SAIL, after the first one in Rourkela Steel Plant.  
Agencies

Agencies

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