Q3 sales at 2.94 million tonnes; 25% growth
Q3 PBT grows 102% to Rs.2536 crore
Q3 capex 114% higher at Rs. 2793 crore
The unaudited financial results of Steel Authority of India Limited (SAIL) for October-December (Q3) of FY ÔÇÖ10, taken on record by the companyÔÇÖs Board of Directors here today, reflected profit after tax (PAT) of Rs. 1,675.55 crore, an improvement of 99% over the corresponding period last year (CPLY). The SAIL Board also approved payment of interim dividend at 16% of its paid-up capital, amounting to Rs. 660 crore as against 13% interim dividend paid last year.
The companyÔÇÖs net turnover during Q3 at Rs. 9,697 crore vs. Rs. 8724 crore (yoy) has been 11% higher. In volume terms, sales at 2.9 million tonnes during the quarter were 24.5% higher than Q3 of CPLY. The lower growth in turnover as compared to volume growth was primarily due to 12% lower sales realisation during Q3 than CPLY.
During the quarter, costs of imported coking coal have been lower, though other input costs continued to move up, with higher royalty on iron ore, as well as cost of ferro-alloys, zinc, aluminium, etc., moving up. Apart from lower cost of imported coal and growth in sales, other factors which contributed in doubling of profit during the quarter, were increase in production of value-added steel by 25%, improved techno-economic parameters and several other cost efficiency measures.
The substantially improved performance of Q3 helped SAIL to keep its PAT for the first nine months (April-December) of FY ÔÇÖ10 at Rs. 4,669.5 crore ÔÇô almost at par, merely 0.4% lower than CPLY. PBT for the period at Rs. 7,065.2 crore was similarly lower by only 0.7% than CPLY. In spite of sales growth by 14% in volume terms during April-December ÔÇÖ09, net turnover at Rs. 28,596 crore was lower by about 9% as compared to CPLY, primarily on account of lower realisations.
Under the companyÔÇÖs modernisation & expansion schemes, capital expenditure at Rs. 2,793 crore in Q3 was nearly 114% higher than Rs. 1,306 crore in CPLY. During April-December of FY ÔÇÖ10, it touched Rs. 7,713 crore ÔÇô over 138% that of CPLY (Rs. 3,231 crore). Modernisation & expansion projects at Salem Steel Plant which involve installation of new steel making facilities and a new cold rolling mill are nearing completion. Several stand-alone projects have been commissioned during the quarter.
The continued thrust on production in SAILÔÇÖs captive collieries resulted in 3.5 lakh tonnes of coal being produced in Q3, a record for any quarter, registering a growth of 44% over CPLY. After obtaining statutory approvals, production from the new collieries of Tasra commenced on 26th November, 2009 and production of about 10,000 tonnes was achieved in December ÔÇÖ09. The coal block is being developed with a capacity of 4 MTPA.
Bharat Refractories Limited was merged with SAIL on 28th July ÔÇÖ09 and renamed as SAIL Refractory Unit (SRU). Better management of facilities of the unit led to substantial increase of 21% in production during the quarter yoy.
Towards raw material security with respect to iron ore, significant progress has been made during Q3. For Rowghat mine at Chhattisgarh, after the statutory clearances, lease deed agreement has been signed on 21st October ÔÇÖ09, an issue which had been pending for more than two decades. This will provide iron ore security to Bhilai Steel Plant for around the next 30 years. Regarding Chiria/Gua mines, during Q-3, Govt. of Jharkhand recommended the forest clearance proposal of Budhaburu lease, which has a reserve of about 810 million tonnes of iron ore.
Q3 was also memorable for SAIL and its employees in terms of honours and accolades received. SAILÔÇÖs Bhilai Steel Plant was adjudged as the Best Integrated Steel Plant in the country for the years 2006-07 and 2007-08.
Congratulating the companyÔÇÖs workforce on the Q3 performance, SAIL Chairman Mr. S.K. Roongta said: ÔÇ£We remained focused on our fundamentals during the recent downturn and through relentless pursuit by the SAIL collective, significant successes came our way. SAIL is gearing itself up to face the impending challenges relating to inputs and other cost increases, intensifying competition and those relating to raw material security, while making best efforts to seize the immediate opportunities, with increased demand for steel in the country.ÔÇØ
SAIL Q3 yoy PAT nearly doubles to Rs. 1676 crore
SAIL Chairman Shri S.K. Roongta announcing the unaudited financial results of SAIL for Q3 of FY'10 today at Ispat Bhawan in New Delhi.
