Q3 turnover at Rs 9,657 crore, 29% growth
highest ever first nine-month net profit of Rs 4,300 crore
interim dividend for the third consecutive year
The Net profit (after tax) of the country’s largest steel maker, Steel Authority of India Limited (SAIL) was up by 124% at Rs 1,471 crore during the third quarter of 2006-07 against Rs 656 crore recorded during the corresponding period last year (CPLY). The profit before tax (PBT) at Rs 2,234 crore during the quarter as against Rs 1,036 crore in CPLY also rose by 116%. The sales turnover of the company at Rs 9,657 crore during October-December’06 grew by 29% over CPLY. The unaudited financial results of the company were taken on record by its Board of Directors in a meeting held this morning.
SAIL Board also announced an interim dividend for the third consecutive year at the rate of 16% of the paid-up equity amounting to Rs 660.86 crore for the nine months ending on 31st December 2006. SAIL had paid an interim dividend of Rs 516 crore at the rate of 12.5% at the end of the third quarter of 2005-06.
The public sector steel major, which is in the midst of implementing its Corporate Plan 2010, maintained a progressive improvement in its profitability during the current financial year. This enabled the company to register its highest Net profit (after tax) of Rs 4,300 crore for the first nine months period, ending on 31 December 2006 with a growth of 48% over CPLY. SAIL also recorded its highest first nine months turnover at Rs 27,655 crore during the period- an increase of 25% over CPLY.
Announcing the results, Mr S.K. Roongta, Chairman, SAIL, commented, “The rise in SAIL’s profitability and production & productivity reaffirms our commitment to make SAIL a world class company. We are determined to deliver value to all our stakeholders who continue to repose trust in SAIL. For SAIL, the motto has always been growth with responsibility.”
The profitability of the company improved mainly due to higher production and sales of saleable steel coupled with improvement in product-mix, productivity and techno-economic parameters as well as higher sales realisations, in spite of increase in costs and railway freight on inputs.
SAIL achieved record production of 3.3 million tonnes (MT) of saleable steel and highest-ever sales of 3 MT during October-December’06 with a growth of 6.3% and 8.6% respectively over CPLY. During April-December’06, the company recorded best ever production of 9.3 MT of saleable steel - a growth of 6% as well as best ever sales - recording a growth of 13% over CPLY. SAIL plants operated at an average capacity utilisation of 112% in the first nine months of 2006-07. Production of value-added items was stepped up - 76% in pipes, 23% in Rounds & bars, 14% in HR Coils, 8% in CRNO, and 5% in plates. Production of value-added products has been higher by 16%.
SAIL’s borrowings have been reduced by Rs 384 crore, from Rs 4,298 crore recorded on 31st March 2006 to the level of Rs 3,914 crore as on 31st December 2006. The interest charges at Rs 277 crore during the first nine months of 2006-07 are lower by Rs 85 crore over CPLY.
In its effort to implement its Corporate Plan 2010, which inter-alia would result in its capacity to go up to about 22 million tonnes (MT) of steel, ‘in-principle’ approvals for projects worth about Rs 10,600 crore were given during the quarter. With this, projects worth around Rs 28,000 crore have been sanctioned for implementation. These include ‘in-principle’ approval for modernisation and expansion of IISCO Steel Plant, Salem Steel Plant, Bokaro Steel Plant and some schemes in the other operating units of the company.
In its effort to reach steel of common use to every district of India through its dealers’ network, SAIL has appointed dealers in 432 districts during the current financial year, taking the total number of districts covered by dealers to 529.