SAIL slips as net profit drops 72%

Shares down 2% a Rs 58 in late-morning deals

SAIL has dropped 2% at Rs 58 following a 72% decline in net profit at Rs 446.53 crore.

Steel Authority of India Ltd had a 71.7 per cent decline in  net profit at Rs 446.5 crore for the quarter ended March 31, due to lower sales and high interest cost.

It had reported a net profit of Rs 1,577 crore in the same quarter a year before. Interest costs grew 77 per cent to Rs 215 crore, though tax outgo declined 59 per cent to Rs 295 crore. Sail produced 13.4 million tonnes (MT) of steel in 2012-13 and operated at 103% of its capacity despite challenging market conditions and demand stagnation, the company said. In 2013-14, the company would add 5 MT capacity. Currently, the steel major has a capcity of 14MT.

The stock opened at Rs 58.95 and touched a low of Rs 57.85. It is now down 2% at Rs 58. Around 1,48,000 shares have been traded on the BSE so far, as against a two week daily trade average of 3,28,00 shares.