Millennium Post

SAIL turnover grows 7% at Rs 50,348 cr

The audited financial results of Steel Authority of India Limited (SAIL) for the year 2011-12, taken on record by its board of directors on Tuesday, showed the company's turnover for January-March (Q4) of 2011-12 growing 13% over the corresponding period last year to Rs 14,785 crore.

SAIL's Q4 profit before tax (PBT) was at Rs 2,301 crore was 3.4% higher than the year ago period, while profit after tax (PAT) at Rs 1,577 crore showed improvement of 3% over the same period a year ago. The company's profitability during Q4 showed substantial improvement over the previous quarter (Oct-Dec '11).

The robust performance in Q4 helped the company achieve gross sales turnover of over Rs 50,000 crore during 2011-12, for the first time since inception, with a growth of 7% over the previous year.

Massive cost push due to a variety of factors, however, chipped away the topline gains, resulting in SAIL's FY '12 PBT and PAT falling 28% year-on-year to Rs 5,151 crore and Rs 3,543 crore, respectively.

The effect of input price increase, amounting to over Rs 4,000 crore, mainly of imported coking coal with average prices rising to $288 in FY '12 from $213 the previous year, was compounded by the volatility in dollarrupee valuations, carrying an adverse impact of around Rs. 900 crore.

Reflecting on the achievements of the company during, SAIL chairman C S Verma said: 'It is a matter of great pride that SAIL's turnover crossed the Rs 50,000- crore mark during a year in which the global economy faced many challenges. With 2012 having begun on a very positive note for us, and our strategic initiatives in several areas taking firm shape, our outlook is bright. The focus during the current year will be on completing the ongoing M&E plan to give SAIL the readiness to meet the projected growth in steel demand during the 12th Plan period and beyond.'
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