SAIL Reports 29 % Fall in Net Profits

Steel Authority of India LtdDespite 20% jump in sales, high material costs have dipped the Q1 net profits of Steel Authority of India Ltd. (SAIL) by 29 per cent to Rs. 838 crore. In a statement recently, SAIL also said that the company earned a net profit of Rs. 1,177 crore in the same quarter last fiscal.

In its statement, the company also highlighted that during the quarter only, the company had spent an additional expenditure of nearly Rs. 580 crore on cost of coal. Out of which, Rs. 422 crore was spent on higher cost of imported coking coal.

Moreover, the price rise of coal from $200 a tonne in the first quart of last year to $330 a tonne in the first quarter of this fiscal in the report also gained attention of the investors.

The company further confirmed that it consumed raw materials worth Rs. 5,229 crore during the reporting quarter whereas the same figure was Rs. 4,702 crore in the same quarter last fiscal.

A rise of 5% is cited in the production of crude steel during the quarter as the figures have reached to 2.35 million tonnes, said the company, who further added that higher production has taken the net sales of the company to Rs.
11,891 crore from Rs. 9,931 crore in the same quarter last fiscal.