SAIL Q1 net down 18% to Rs 696 cr on higher input costs

SAIL's Q1 gross sales were at Rs 11,912 crore, almost at the same level as Q1 FY12

Steel major SAIL today reported a 18% dip in net profit at Rs 696 crore for the first quarter ended June, 2012 on account of higher input costs and weak rupee.

The state-owned firm had posted net profit of Rs 848 crore in the April-June quarter of the 2011-12 fiscal.

The decline in the profit was "mainly due to higher input costs and foreign exchange fluctuations, which saw the rupee weakening by a steep 21% in Q1 FY13 compared to the corresponding period last year," the company said in a statement.

SAIL's Q1 gross sales were at Rs 11,912 crore, almost at the same level of Rs 11,907 crore in the year-ago period.

The company consumed raw material worth Rs 5,642 crore during the reporting quarter, as compared to Rs 5,234 crore in the same quarter last fiscal. Power and fuel consumption in Q1 accounted for Rs 1,224 crore as compared to 1,107 crore.

However, SAIL said impact of higher input costs was partially neutralised by higher net sales realisations in Q1 FY13, which grew by 8.5% compared to the corresponding period last year.

"This was helped by internal measures taken by the company, which yielded a richer product mix in Q1 of FY13 with production of value-added steel growing by 8% over the corresponding period last year," it added.