Domestic sales push up SAIL net

BS 200 SCORECARD

Robust sales in the domestic market and higher capacity utilisation spurred state-run Steel Authority of India's (SAIL) third quarter net profit by 124.2 per cent to Rs 1,471.19 crore against Rs 656.07 crore in the corresponding quarter last fiscal.

The company also declared an interim dividend of 16 per cent against the paid-up equity amounting to Rs 660.86 crore for the nine months ending December 31, 2006.

Total income during the quarter stood at Rs 8,760.16 crore, compared with Rs 6,736.84 crore in the same quarter previous fiscal, up 30 per cent quarter on quarter.

"Our production was up 6 per cent and sales were up 9 per cent during the third quarter, which helped us post healthy growth figures," Chairman S K Roongta told reporters here today.

He said among other factors that contributed to growth in Q3 figures include better product mix, use of improved technology and energy consumption measures.

"The demand in the period was driven mainly by sectors such as infrastructure, construction and automobile" Roongta added.

For the nine months ended December 2006, the company reported 47.79 per cent increase in net profit to Rs 4,300.41 crore compared with Rs 2,909.7 crore in the corresponding period of previous fiscal. Total sales during the period stood at Rs 25,241.55 crore against Rs 20,183.7 crore in the year-ago period, up 25 per cent year on year.