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Mr S. K. Roongta

Our Bureau

New Delhi, Oct 21 Steel Authority of India Ltd (SAIL) announced an 18 per cent increase in its profit after tax (PAT) for the second quarter of the current fiscal at Rs 2,009.6 crore, propelled by a 33 per cent increase in the production of value added and special steel products.

Total turnover for the quarter stood at Rs 13,544 crore.

With domestic steel prices on a downturn following declining international prices, the company feels that margins would come under pressure in the third quarter.

The company Chairman, Mr S.K. Roongta, said, “The situation is such that there will be a price correction at the month-end.”

“Maintaining prices in the December quarter will be an uphill task,” he said.

Production of value-added and special steel products touched 1.14 million tonnes during the quarter, while hot metal production improved by seven per cent to 3.8 million tonnes and crude steel output went up by five per cent to 3.5 million tonnes, the company reported.

The main value added products in which output increased significantly during the quarter include heavy structurals (123 per cent), pipes (54 per cent), TMT rounds (29 per cent), plates (10 per cent) and tinplates (14 per cent).

The other factors that contributed to higher profits include better product-mix, achievement of improved techno-economic parameters, lower interest cost and higher interest earnings.

The company posted a profit before tax (PBT) of Rs 3,066.99 crore in the second quarter while for the first six months, the PBT stood at Rs 5,859.8 crore.

Increase in the prices of raw materials such as coking coal, ferro alloys among others resulted in an increase of around Rs 2,362 crore in costs.

In order to secure raw material supplies, the company is trying to acquire minority stake in some coking coal mines in countries such as Australia, New Zealand, Mozambique and other countries.

More Stories on : Financial Performance | Steel | Steel Authority of India Ltd

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