New Delhi: SAIL announced 8.6 percent rise in net profit for October-December quarter at Rs 579 crore on the back of improved efficiencies and lower input costs.
The state-run steel maker had clocked Rs 533 crore net profit in the corresponding quarter of last fiscal, it said in a statement. Like other domestic steel makers, SAIL mostly depends on imported coking coal which accounts for nearly 75 percent of its need. The price of coking coal tumbled by 65 percent in recent times from its peak in 2011 to USD 115 per tonne on higher supply and lower demand from China.
Steel Authority of India said in a statement, “Improvement in profit was helped by factors such as enhanced production, better techno-economic parameters along with reduction in input cost particularly of imported coking coal.” Turnover of the company, however, was lower by 3 percent for the quarter at Rs 12,291 crore impacted by higher imports and nearly flat steel consumption in the country.
It said, “The turnover was adversely impacted due to prevailing challenging market conditions, fraught with high imports and consumption of steel remaining almost flat in the country.” SAIL said its Board has approved 17.5 percent interim dividend for the current fiscal which will involve a pay-out of Rs 870 crore including tax on dividends.
