The Hindu Business Line : SAIL net rises 17.84% on higher sales

New Delhi, Oct. 30 Higher sales of saleable steel have pushed Steel Authority of India Ltd’s (SAIL) net profit for the second quarter ended September 30, 2007 up by 17.84 per cent as compared to the corresponding previous quarter. The net profit for the second quarter of the current fiscal was at Rs 1,700.24 crore as against Rs 1,442.81 crore in the second quarter of the previous financial year.

The net sales for the quarter increased 7.28 per cent to Rs 9,163. 46 crore compared with (Rs 8,541.8 crore).

“The improvement in the performance during the quarter was due to the higher production of saleable steel, including value-added products, higher sales volume, improvement in major techno-economic parameters,” SAIL Chairman, Mr Sushil Kumar Roongta, said.

He added that lower interest costs and higher interest earnings also contributed in the company posting its highest-ever second quarter net profit.

The company’s saleable steel production during the quarter under review was 10 per cent higher at 3.25 million tonnes (mt). “Thrust on stepping up production of value-added products continued and the output touched 1 mt, which was 20 per cent higher compared to the same period last year. With this, the best-ever capacity utilisation of 117 per cent was also achieved during the quarter,” Mr Roongta said.

He also said that with the further reduction in the level of borrowings, the company’s debt-equity ratio improved to 0.16:1 in comparison to 0.24:1, while the net worth of the company crossed Rs 20,000 crore.

To invest Rs 15,000 cr

The board of the company also accorded approvals for investment of over Rs 15,000 crore for modernisation and expansion schemes of IISCO and Salem steel plants.

Shares of the company on Tuesday were down 5.6 per cent at Rs 261.05 on the Bombay Stock Exchange.