SAIL's Q3 net profit higher by 124 pr cent at Rs 1,471 crore

Kolkata, Jan 29 (UNI) Steel Authority of India Limited (SAIL), country's largest steel maker, has registered a net profit of Rs 1,471 crore, a growth of 124 per cent, in the third quarter of 2006-07 against Rs 656 crore in the corresponding period last year.

A company release said here today that the profit before tax (PBT) at Rs 2,234 crore during the quarter as against Rs 1,036 crore last year, a growth of 116 per cent.

The sales turnover of the company was recorded at Rs 9,657 crore during October-December'06, which grew by 29 per cent over corresponding period last year.

SAIL Board also announced an interim dividend for the third consecutive year at the rate of 16 per cent of the paid-up equity amounting to Rs 660.86 crore for the nine months ending on 31st December 2006.

SAIL had paid an interim dividend of Rs 516 crore at the rate of 12.5 per cent at the end of the third quarter of 2005-06.

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.

It said this enabled the company to register its highest Net profit (after tax) of Rs 4,300 crore for the first nine months period, ending on 31 December 2006 with a growth of 48 per cent over last year. SAIL also recorded its highest first nine months turnover at Rs.27,655 crore during the period- an increase of 25 per cent.

Announcing the results, Mr S.K. Roongta, Chairman, SAIL, commented, " The rise in SAIL's profitability and production and productivity reaffirms our commitment to make SAIL a world class company. We are determined to deliver value to all our stakeholders who continue to repose trust in SAIL. " SAIL had also achieved record production of 3.3 million tonnes (MT) of saleable steel and highest-ever sales of 3 MT during October-December'06 with a growth of 6.3 per cent and 8.6 per cent respectively over corresponding period last year.

SAIL's borrowings had 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 31st December 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 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 had been sanctioned for implementation.

These included '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.

The company had appointed dealers in 432 districts during the current financial year, taking the total number of districts covered by dealers to 529.

UNI