SAIL Q1 net slips 18%

SAIL on Monday reported a 18 per cent dip in net profit, at Rs 696 crore, for the quarter ended June 30, on account of higher input costs and a weak rupee. It had posted a net profit of Rs 848 crore in the April-June quarter last year.

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 per cent in Q1 FY13, compared to the year-ago period,” the company said.

Gross sales were at Rs 11,912 crore, almost at the same level of Rs 11,907 crore in the year-ago period. Meanwhile, a SAIL-led consortium to invest $75 million in first phase for the development of Hajigak three iron ore mines in Afghanistan for which the mining rights were won in November 2011.