SAIL net up 40%

Steel Authority of India (SAIL), the country’s second-largest steel producer, has recorded a profit of Rs 2,084.9 crore from the fourth quarter of 2009-10 — up 40 per cent from Rs 1,485.20 crore of the corresponding period in the previous financial year. Total income of the company rose to Rs 12,672.69 crore in the January-March period, marginally higher than the Rs 12,519.33 crore in the same quarter of the previous year.

“The fourth quarter performance was mainly due to a market-oriented product mix, increase in production of value-added steels and several cost-efficiency measures. Improved sales realisation during the quarter and reduction in cost of some inputs, like imported coking coal and ferro-alloys, also boosted the bottom line,” SAIL Chairman S K Roongta said.

For the full financial year 2009-10, the company registered a net profit of Rs 6,754.37 crore, up 9.4 per cent from Rs 6,170.40 crore in 2008-09. In volume terms, sales grew seven per cent in 2009-10 to 12.11 million tonnes In the entire year, SAIL produced 14.5 million tonnes of hot metal, 13.5 million tonnes of crude and 12.6 million tonnes of saleable steel.

The company has declared a final dividend of Rs 1.70 per share, in addition to the interim dividend of Rs 1.60 per share already paid, thus taking the total dividend to Rs 3.30 per share for the year ended March 2010. During the year, the company increased its market borrowings by over Rs 8,900 crore, while the company’s total borrowings stood at Rs 16,511 crore, taking its debt-equity ratio to 0.49:1.

“This means we have sufficient cushion to increase our borrowings,” Roongta said.

Turnover dips 6%
SAIL, however, saw a drop of six per cent in its net turnover in 2009-10 at Rs 40,551 crore on account of lower sales realisation, especially during the first half of the financial year, from Rs 43,188 crore in 2008-09.