Company declares 20.2% interim dividend
New Delhi: An aggressive sales strategy based on volume growth and increased efficiency in production led to impressive Q3 FY ’14 results for Steel Authority of India Limited (SAIL). The company registered a 10% growth in its profit after tax (PAT), at Rs 533 crore in Q3 FY ’14, up from Rs 484 crore in the corresponding period last year (CPLY). The unaudited financial results of SAIL for the quarter Oct-Dec ’13 were taken on record by its Board of Directors here today.
Despite a subdued demand environment in the economy, in Q3 FY ’14, total turnover at Rs 12,716 crores was up 8% and total sales of steel by SAIL at 2.94 million tonnes (MT) was up 7% on Y-O-Y basis. The company's capital expenditure during the quarter at Rs 2,774 crore jumped by 30% over CPLY.
SAIL plants continued to perform robustly; the company achieved the highest ever Q3 production of value added steel at 1.35 million tonnes (MT) in Q3 FY ’14, bettering its previous best of 1.23 MT in CPLY. Production of hot metal, crude steel and saleable steel each grew by 4% each during the quarter, at 3.72 MT, 3.48 MT and 3.17 MT respectively.
|Parameter||Q3 (2013-14)||Q3 (2012-13)||Growth%|
|Saleable Production (Million tonnes)||3.17||3.06||4|
|Sales (Million tonnes)||2.94||2.76||7|
|Turnover (Rs crore)||12,716||11,801||8|
|PAT (Rs crore)||533||484||10|
SAIL Board approved interim dividend for its shareholders at 20.2% of the company's paid-up capital, as against the interim dividend of 16% last year. The cumulative net worth of the company increased from Rs 41,025 crore as on 31.03.2013 to Rs 43,189 crore as on 31.12.13. PAT for the 9-month period of Apr‑Dec ’13 was Rs 2164 crore, a growth of 25.5% compared to the CPLY figure of Rs 1724 crore.
SAIL continued with its thrust on modernisation and expansion activities as per plan. 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 Dec'13. With these units getting on stream, SAIL is advancing towards the last mile in its ambitious plan of capacity addition and modernization. Of the major projects completed recently, India’s largest Blast Furnace i.e., high volume 4060 m3 was blown-in at Rourkela in Aug’13. In addition, Sinter Plant-3, new Slab Caster at the Steel Melting Shop-II and Continuous Caster were also completed in the plant. At IISCO Steel Plant, Coke Oven Battery Complex, Sinter plant & Wire Rod Mill are operational and many major facilities like Blast Furnace & Oxygen Plant are ready and commissioning is linked with the completion of BOF Shop.
Speaking to media persons at SAIL Corporate Office today, SAIL Chairman Mr CS Verma said, “The increase in sales turnover achieved by SAIL, despite a 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 Chairman Mr CS Verma at SAIL's Q3FY14 result announcement in SAIL Corporate Office, Ispat Bhawan, Lodi Road, New Delhi on Feb 14, 2014