The Hindu Business Line : SAIL rides on higher demand, price realisation

New Delhi May 21 Riding on good market demand and higher price realisation, SAIL today reported net profit after tax (PAT) of Rs 1,901.88 crore for the fourth quarter of 2006-07, an increase of 72 per cent over Rs 1,103.20 crore in the corresponding previous period.

For the whole year, the company posted 55 per cent growth in net profit to Rs 6,202.29 crore (Rs 4,012.97 crore).

Steel prices rose significantly in the year under review; during the last quarter, they were 12-14 per cent higher than the previous period.

DIVIDEND

The company has declared final dividend of 31 per cent, including 16 per cent interim dividend announced earlier.

During the year, the company recorded all-time high turnover of Rs 39,189 crore and profit before tax (PBT) of Rs 9,423 crore.

During the quarter, it recorded highest ever production of saleable steel (3.25 million tonnes), taking annual production to 12.6 million tonnes.

Total sales stood at 11.9 million tonnes, marking a growth of five per cent over the previous year.

In the year, around 5.25 lakh tonnes of additional finished steel were produced by enhancing overall capacity utilisation to 114 per cent (109 per cent).

The SAIL board also approved modernisation and expansion plans worth Rs 23,000 crore during the year, mainly for the plants at Burnpur (erstwhile IISCO), Bokaro, Salem and Bhilai.

The Chairman, Mr S.K. Roongta, added: "Only the expansion plans of Rourkela and Durgapur are left; they will be taken up soon."

Besides recording substantially higher labour productivity - of around 200 tonnes per employee per year - the company also achieved lowest ever coke rate and energy consumption and improved blast furnace efficiency.

"In addition, thrust on cost reduction continued, leading to overall cost reduction of around Rs 400 crore."

VALUE-ADDED PRODUCTS

During the fourth quarter, the company sold significantly higher volumes of value-added products like rails, TMT bars, structurals, ERW pipes and alloy steel.

"The results are a reflection of the company's strengths and we are determined to make optimum use of our resources," Mr Roongta said.

"We are fully geared up to implementing modernisation and expansion plans to meet the growing demand for steel in the country."

Production from SAIL's captive iron ore mines of SAIL crossed 24 million tonnes during the year.

The company's entire iron ore requirement was met through captive production, the Chairman said.

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