Steel Authority of India Limited (SAIL) has paid Rs. 673.49 crore as interim dividend to the Government of India for the financial year 2007-08. The cheque for the amount was handed over to Union Minister for Chemicals & Fertilisers and Steel Mr. Ram Vilas Paswan by SAIL Chairman Mr. S.K. Roongta this afternoon. Present on the occasion were Dr. J.S. Sarna, Secretary (Fertiliser & Steel), Mr. B.S. Meena, Additional Secretary & Financial Advisor, Ministry of Steel, and some SAIL Board members.
On 29th January 2008, while taking on record the company's achievement of highest-ever net profit (after tax) of Rs. 5,160 crore for the first nine months of the current financial year, the SAIL Board had announced interim dividend for the company's shareholders at a rate of 19% of paid-up equity, amounting to Rs 784.78 crore. This is the highest-ever interim dividend paid by the company so far. SAIL will also pay the Government dividend tax amounting to Rs. 133.37 crore for the interim dividend payout.
SAIL has regularly been paying dividend to its shareholders since 2004-05. The company has since paid Rs. 4,254 crore as dividend, including this interim dividend, to its shareholders. Of this, dividend payout to the Government of India amounts to Rs. 3,651 crore, besides Rs. 632 crore paid as dividend distribution tax. SAIL's contribution to the national exchequer (towards excise and custom duties, corporate tax, dividend, dividend tax, etc.) for the period April 2004 to December 2007 stands at around Rs. 35,160 crore.
The company has been able to improve its profitability and consequently higher interim dividend payout for the financial year, mainly due to improvement in product-mix, substantial increase in production of special grade steel and value-added items, cost reduction and higher net sales realisation. During April-December '07, SAIL recorded its best-ever production of 9.6 million tonnes of saleable steel. Around 3.7 lakh tonnes of additional finished steel were produced during the period from existing mills by maximising capacity utilisation, reducing production of semis, and thereby improving the share of finished steel to 84% from 81%. The SAIL plants operated at an average capacity utilisation of 115% during the period.
SAIL pays Rs. 673.49 crore as interim dividend to Government
Union Minister for Chemicals & Fertlisers and Steel Mr. Ram Vilas Paswan receiving the interim dividend cheque from SAIL Chairman Mr. S.K. Roongta (2nd from right). Others seen in the picture are (from left): Mr. B.S. Meena, Addl. Secy. & Fin. Advisor, Ministry of Steel, Dr. J.S. Sarna, Secy (Fertiliser & Steel), Mr. B.K. Handique, Union Minister of State for Chemicals & Fertlisers and Parliamentary Affairs), Mr. G. Ojha, SAIL Director (Personnel), Mr. V.K. Gulhati, SAIL Director (Technical), and Mr. S. Bhattacharya, SAIL Director (Finance)
