- Best-ever Q2 turnover of Rs. 13544 crore; 31 % growth
- Highest-ever PBT of Rs. 3067 crore; 19% growth
- 33% higher value-added steel production
- Best-ever Q2 techno-economics
The unaudited financial results of Steel Authority of India Limited (SAIL) for July-September of 2008-09, taken on record by the company's Board of Directors here today, revealed that the steel major has achieved highest-ever Q2 net profit of Rs. 2,009.6 crore, 18.2% higher than the corresponding period last year (CPLY). This has helped the company to achieve highest-ever first-half (H1) net profit of Rs. 3,844.8 crore, a growth of 19.2% over CPLY.
SAIL also recorded highest-ever Q2 turnover at Rs. 13,544.24 crore, showing 30.6% growth over CPLY. Consequently, the company achieved an H1 turnover of Rs. 25,727.7 crore, 33.5% higher than CPLY. Profit before tax (PBT) in Q2 of Rs. 3,066.99 crore was 19.2% higher than CPLY, while H1 PBT at Rs. 5,859.8 crore was 20% higher than CPLY. Despite bearing an impact of around Rs. 2,362 crore in H1 due to escalation in cost of inputs such as imported/indigenous coking coal, ferro-alloys, etc., SAIL improved its financial performance through improved production of value-added steel items, better product-mix, achievement of improved techno-economic parameters, lower interest cost and higher interest earnings. In addition, SAIL has made provision of over Rs. 2,000 crore towards pending salary/wage revision.
The SAIL plants together produced in Q2 a record volume of 3.8 million tonnes of hot metal, 3.5 million tonnes of crude steel and 1.14 million tonnes of value-added/special steel products, higher than CPLY by 7%, 5% and 33%, respectively. Further improvement in key techno-economic parameters also continued, with reduction of 3% in coke rate and 7% in specific energy consumption during July-September '08. Blast furnace productivity was 5% higher than CPLY. Production through the energy-efficient continuous casting route at 2.3 million tonnes was 8% higher than CPLY.
Q2 sales of value-added products were substantially higher than CPLY ÔÇô like heavy structurals by 123%, pipes by 54%, TMT rounds by 29%, plates by 10% and tinplates by 14%.
The financial health of SAIL was further strengthened during the current financial year with the company's net worth rising to around Rs. 27,000 crore as on 30.9.08. With implementation of its modernisation & expansion programme progressing as per schedule, the company's capital expenditure increased significantly during H1, crossing Rs. 1,900 crore against Rs. 750 crore in CPLY.