New Delhi, Nov 03, 2011
Despite challenging market conditions prevailing during most of the current financial year, Steel Authority of India Limited (SAIL) recorded a sales turnover of Rs 23877.78 crore during April-September (H1), as compared to Rs. 21,628 crore in the corresponding period last year (CPLY), registering an increase of 10.4% y-o-y.
The company achieved total sales of 5.6 million tonnes during H1, showing a growth of 4.3% over CPLY. Sales of special quality grades in flat products were up by 8% in H1 over CPLY. Sales of long rails to the Indian Railways were also higher by 14.7% over CPLY.
SAIL’s net worth has risen by Rs. 1,493 crore from 31st March ’11 to over Rs. 38,562 crore as on 30th Sept. ’11.
During the first six months of the current financial year, the company registered profit before tax (PBT) of Rs 1,945.75 crore and profit after tax (PAT) of Rs 1,333.62 crore, which were about 42% and 41% lower than CPLY, respectively. Impact of Rs. 1,916 crore in PBT compared to CPLY was primarily due to higher input prices, out of which Rs. 1,071 crore was on account of imported coal alone. Besides, impact of foreign exchange variation has been to the tune of Rs. 579 crore during this period on account of dollar appreciating from a level of Rs. 48.98 as on 30.9.11 against Rs. 45.35 as on 30.9.10. The impact of these factors was, however, partially offset by higher sales volumes and net sales realisations.
Results for the company’s performance during July-Sept. (Q2) of FY ’12 reflected growth of over 2% in sales turnover (Rs. 11970.35 crore) compared to CPLY. PBT and PAT during Q2, at Rs. 714.89 crore and Rs. 494.64 crore, were around 55% lower than CPLY, caused by several adverse factors, including higher input prices foreign exchange variation, royalty on iron ore, etc. Excluding the exceptional item of foreign exchange variation of Rs. 509 crore during the quarter, PBT for the company would have been almost at the same level as the previous quarter, i.e. Apr-June ’11. Impact on account of foreign exchange variation is only notional.
Responding to the results, SAIL Chairman C.S. Verma said, “We are hopeful of demand to pick up in the coming months in the country with projects likely to take off in several major sectors of the economy, particularly Railways, Roads, Power, etc. This along with falling prices of input raw material prices should help the domestic steel industry combat the current challenges.”