Riding on higher sales owing to greater demand from housing and automobile sectors, Steel Authority of India ltd (SAIl) recorded a 10 per cent increase in its net profit for the period ending December 30, 2013 (or third quarter of the current fiscal) at Rs 533 crore. The company had registered a net profit of Rs 484 crore during the corresponding period.
SAIl Chairman CS Verma while addressing mediapersons said that despite an overall sluggish crude scenario globally, the company’s sales during the third quarter grew by 7 per cent (they stood at 2.94 million tonnes over 2.76 million tonnes from the corresponding period), owing to increasing demands from the housing and automobile sectors. Sales of flat steel used in automobiles and white goods sectors rose by 8.6 per cent, long products, which find application in construction space, rose by 4.5 per cent. The company had also hiked prices by up to Rs 1,500 per tonne in the last three months in phases for its products.
“The increase in sales turnover achieved by SAIl, despite a flat steel market, is an indication that the company is well-placed to meet any market situation,” Verma said. SAIl achieved its highest ever production of value added steel at 1.35 million tonnes in the last quarter, he informed, adding that all the integrated plants of the company are running at over 100 per cent rated capacity.
“Going forward, we are confident that the product and process improvement currently under way in SAIl as a result of modernisation will bring in greater returns on our investment,” he said. Meanwhile, SAIl board also approved a 20.2 per cent interim dividend as against 16 per cent last year. It also cleared a 17 per cent rise in basic and dearness allowances for around 85,000 of its non-executives leading to around Rs 1,100 crore additional annual outgo.