SAIL Q3 profit up 10% to Rs 533cr on higher sales, better price

NEW DELHI: State-run Steel Authority of India ( SAIL) reported a net profit of Rs 532.6 crore, up 10% for the quarter ended on December, compared with Rs 484.30 crore in the same quarter last year, helped by higher sales volumes. The company said revenue grew to Rs 1,2716 crore, up 8% from last year. Sales volumes went up 7% to 2.94 million tonnes (mt). Analysts, on an average, were expecting a net profit of Rs 510.2 crore on a revenue of Rs 11,689.6 crore, according to a poll conducted by Bloomberg.

“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,” chairman CS Verma said. SAIL like most other steel makers has increased prices during the quarter in a sluggish domestic market to protect margins. It is undertaking a massive modernisation and expansion plan, and is targeting to double its production capacity to 24 mt by March 2015.

The company is advancing towards the last mile in its plan of capacity addition and modernisation, it said in a statement. SAIL’s board approved interim dividend for its shareholders at 20.2% of the company’s paid-up capital versus the interim dividend of 16% last year.