SAIl’s relentless drive to fast-track its Modernisation and Expansion Plan (MEP), resulted in commissioning of projects worth Rs 2700 crore in April-June, the highest in any quarter , since inception.
The company’s capital expenditure during Q-1FY14 was Rs 2082 crore. Under the MEP, cumulative orders worth Rs 58,579 crore were placed and an expenditure of Rs 46,064 crore incurred until June. In April-June quarter, the significant projects which have commenced production, included the new seven meter tall battery complex along with coke dry cooling plant and the 2500mm wide slab caster, both at Rourkela Steel Plant.
Maintaining its thrust on higher sales, the company achieved a growth of five per cent in total sales during the quarter April-June which were 2.62 million tonnes, as against 2.49 million tonnes in the corresponding quarter of last year. Production of value added steel touched the best ever Q1 mark, at 1.29 MT, a year on year growth of four per cent. Efficiency in production also got a boost with specific energy consumption lower by two per cent than CPlY, and BF productivity better by one per cent. There was an improvement of two per cent in concast production, and captive power generation increased by eight per cent compared to CPlY.
The unaudited financial results of Steel Authority of India limited (SAIl) for the quarter April-June were taken on record by its Board of Directors today. The company recorded Profit After Tax (PAT) of Rs 451 crore in Q1 of FY14, down 35 per cent compared to Rs 696 crore in CPlY. The sharp decline in NSR of 10.9 per cent, per ton of steel in Q-1 FY 2014 due to subdued market conditions, adversely affected the profitability of SAIl, although record first quarter production of 3.2 million tonnes of saleable steel was achieved, which was higher by six per cent over CPlY.
In an effort to reduce costs, the company achieved a reduction in its average rate of borrowing which was down to 5.5 per cent in April-June. Further, impact of foreign exchange fluctuation was contained through hedging and reduction in the foreign currency debt. For the first time, SAIl’s manpower declined to under 100,000 as on June 30, although the wage bill was higher due to provision for wage revision and actuarial impact. During the quarter April-June the net worth of the company increased to Rs 41,476 crore as on June 30 as compared to Rs 41,025 crore as on March 31.
SAIl became instrumental in enabling India to become 5th nation in the world to have indigenous aircraft carrier (IAC), when INS Vikrant was launched on August 12 this year. This marks India’s entry into the group of nations that have battleship designing and building capabilities. In its construction, 26,000 tonnes of high grade DMR 249 steel plates were used. All requirements were met by SAIl plants, with the steel plates withstanding low temperatures whilst having high corrosion resistance and ultra high strength.
Durga, the largest blast furnace of the country became operational at SAIl’s Rourkela Steel Plant in August, 2013. The blast furnace has a daily hot metal production capacity of 8000 tonnes per day, and an enhanced campaign life of 20 years.