Steel Authority of India Limited (SAIL) recorded a sales turnover of Rs 11,697 crore during July-Sept. (Q2) of the current financial year, registering an increase of 9% over the corresponding period last year (CPLY) and nearly 18% increase over the preceding quarter Q1. SAIL registered profit before tax (PBT) of Rs 1592 crore and profit after tax (PAT) of Rs 1090 crore, which were about 36% and 34% lower than CPLY respectively. PBT variation of Rs. 927 crore compared to CPLY, is primarily caused by increase in input price to the tune of Rs. 1097 crore (out of which, Rs. 939 crore is on account of imported coking coal alone). The wage cost in Q2 was up by Rs. 572 crore over CPLY on account of revised wage structure.
Total Sales in Q2 were 3.03 Million tonnes, an increase of over 30% over the preceding quarter, with value-added sales being 38% of the total sales. During the quarter, SAILÔÇÖs Net worth has risen by Rs.1,090 crore to over Rs. 35,583 crore as on September 30, 2010. Debt equity ratio has come down from 0.5 in the preceding quarter to 0.38 as on September 30, 2010.
The unaudited financial results of SAIL for Q2 were taken on record here today by the companyÔÇÖs Board of Directors.
During the quarter, commissioning of second ladle furnace at Rourkela Steel Plant and new tension leveling line at Salem Steel Plant were carried out. 74 SAIL employees received Vishwakarma Rashtriya Puraskar and 56 employees received Prime MinisterÔÇÖs Shram Awards. SAIL also signed a joint venture with RITES Ltd. for setting up a Wagon Manufacturing Unit at Kulti, Bardhman district in West Bengal.
SAIL records a sales turnover of Rs. 11,697 crore in Q2
Announcing the Q2 results, SAIL Chairman Mr. C.S. Verma said: ÔÇ£We have been able to withstand external market conditions, be it substantial increase in input costs or pressure on margins. This has been possible due to increased sales and optimization of product-mix. With input costs likely to stabilize in the coming weeks, we are confident of overcoming the impact of the market.ÔÇØ
