SAIL first quarter profit after tax falls 27.7 per cent to Rs1,326 crore

Steel Authority of India Limited (SAIL), the country's biggest steelmaker, today reported a 27.7 per cent drop in its fiscal first quarter (April-June 2009-10) profit after tax (PAT) at Rs1,326.09 crore. Profit before tax (PBT) was down 28 per cent at Rs2,005.91 crore during the quarter.

The company's net turnover at Rs8,950.64 crore was lower by 16.5 per cent over the corresponding period last year, unaudited financial results released by the company showed.

SAIL said the adverse impact of input price increases, especially of coking coal by almost 49 per cent (Rs868 crore), and a drop in steel prices was partially neutralised by higher production and sales volumes, increase in special/value-added steel production, improved operational parameters and aggressive cost efficiencies, resulting in savings to the extent of about Rs570 crore during Q1.

Domestic sales grew about 5 per cent compared to the corresponding previous year quarter with best-ever Q1 sales of value-added products. Exports at 50,517 tonnes were also up 13 per cent. SAIL also achieved best-ever Q1 saleable steel production at 3.06 million tonnes, a growth of over 4 per cent from the previous year quarter.

Net Q1 sales turnover at Rs9,746.75 crore was lower by 20 per cent over the previous year quarter. However, EBDITA to net sales ratio rose to 27 per cent in Q1 from 22.6 per cent in Q4 of FY '09, the release said.

SAIL plants operated at an overall capacity utilisation of 111 per cent during the quarter. With continued thrust on production of value-added and special steels, the major SAIL plants produced 1.15 million tonnes of these items during Q1 2009-10, a growth of 21 per cent over Q1 2008-09.