The country’s largest steel producer, Steel Authority of India Ltd (SAIL), has posted a 10 per cent increase in profit after tax (PAT) at Rs 533 crore for the financial year’s third quarter (October-December).
It had posted a PAT of Rs 484 crore in the same quarter a year ago.
The company stated an aggressive sales strategy, based on volume growth and increased efficiency in production, led to the impressive result.
The turnover grew by eight per cent to Rs 12,716 crore for the quarter. Total sales went up seven per cent to 2.9 million tonnes (mt) for the quarter as compared to the corresponding quarter in FY13.
In line with its modernisation plan, packages worth Rs 14,000 crore were operationalised in different plants/units till December and orders for Rs 58,700 crore placed till the same period.
Chairman C S Verma said, “The increase in sales turnover, despite a flat steel market, indicates the company is well-placed to meet any market situation. Going forward, we are confident the product and process improvement, currently underway in SAIL as a result of modernisation, will bring greater returns on our investment.”
The company’s board also approved an interim dividend for its shareholders at 20.2 per cent of the company’s paid-up capital, as compared to the interim dividend of 16 per cent last year. The cumulative net worth of the company increased from Rs 41,025 crore as on March 31, 2013 to Rs 43,189 crore as on December 31, 2013. It also approved a 17 per cent rise in basic and dearness allowances for around 85,000 of its non-executives leading to around Rs 1,100 crore additional annual outgo. The wage revision was pending since January, 2012.