SAIL Q3FY07 net up 124.23%

New Delhi, Jan 29 (UNI) The public sector steel major Steel Authority of India Ltd (SAIL) today posted 124.23 per cent rise in net profit to Rs 1,471 crore in the third quarter of 2006-07, as against Rs 656 crore during the corresponding period last year (CPLY).

The board of directors of SAIL has declared a higher interim dividend of 16 per cent for the nine months period ending December 31, 2006, as against 12.5 per cent of the previous year at its meeting here.

''The company has chalked out a massive expansion plan to have its installed capacity at 22 million tonnes (MT) by 2010 up from its present level of 12 MT at an anticipated investment of around Rs 35,000 crore,'' SAIL Chairman S K Roongta said while announcing the result.

He said this additional production will take care of the demand from the domestic infrastructure sector.

In this, around five hundred graduate engineers would be absorbed this year itself to further improve upon its quality norms, he added.

He said the company has asked for offer of expression from the coal mining companies world over and had received a number of expression a final decison would be taken very soon.

The overseas acquisation of coal would help the company in reducing its cost of the raw materials over the years. The company keeping this view in mind is also targeting selected iron ore mines and if required the company will not hesitate even in putting up a green field steel plant to meet the aspiration of the local people, Mr Roongta said.

The profit before tax (PBT) was placed at Rs 2,234 crore during the quarter as against Rs 1,036 crore in CPLY also rose by 116 per cent.

The sales turnover of the company at Rs 9,657 crore during October-December 2006 grew by 29 per cent over CPLY. The unaudited financial results of the company were taken on record by its Board of Directors.

The public sector steel major, which is in the midst of implementing its Corporate Plan 2010, maintained a progressive improvement in its profitability during the current financial year, enabling the company to register its highest net profit (after tax) of Rs 4,300 crore for the first nine months period, ending on December 31,2006 with a growth of 48 per cent over CPLY.

SAIL also recorded its highest first nine months turnover at Rs 27,655 crore during the period, an increase of 25 per cent over CPLY.

The profitability of the company improved mainly due to higher production and sales of saleable steel coupled with improvement in product-mix, productivity and techno-economic parameters as well as higher sales realisations, in spite of increase in costs and railway freight on inputs.

SAIL achieved record production of 3.3 million tonnes (MT) of saleable steel and highest-ever sales of 3 MT during October-December 2006 with a growth of 6.3 per cent and 8.6 per cent respectively over CPLY.

During April-December'06, the company recorded best ever production of 9.3 MT of saleable steel, a growth of 6 per cent as well as best ever sales, recording a growth of 13 per cent over CPLY.

SAIL plants operated at an average capacity utilisation of 112 per cent in the first nine months of 2006-07. Production of value-added items was stepped up -- 76 per cent in pipes, 23 per cent in rounds and bars, 14 per cent in HR coils, 8 per cent in CRNO, and 5 per cent in plates. Production of value-added products has been higher by 16 per cent.

SAIL's borrowings have been reduced by Rs 384 crore, from Rs 4,298 crore recorded on March 31, 2006 to the level of Rs 3,914 crore as on December 31, 2006. The interest charges at Rs 277 crore during the first nine months of 2006-07 are lower by Rs 85 crore over CPLY.

In its effort to implement its Corporate Plan 2010, which inter-alia would result in its capacity to go up to about 22 million tonnes (MT) of steel, 'in-principle' approvals for projects worth about Rs 10,600 crore were given during the quarter.

With this, projects worth around Rs 28,000 crore have been sanctioned for implementation. These include 'in-principle' approval for modernisation and expansion of IISCO Steel Plant, Salem Steel Plant, Bokaro Steel Plant and some schemes in the other operating units of the company.

In its effort to reach steel of common use to every district of India through its dealers' network, SAIL has appointed dealers in 432 districts during the current financial year, taking the total number of districts covered by dealers to 529, he added.

UNI