SAIL Q4 net swings 72.39 pc, announces dividend

New Delhi, May 21 (UNI) State-run Steel Authority of India Ltd (SAIL) today clocked 72.39 per cent jump in its net profit at Rs 1,901.88 crore for the quarter ended March 2007 against Rs 1,103.2 crore for the same period last fiscal, led by various factors.

This includes strong demand for steel, market-driven product-mix, higher value-added special steel production and improved techno-economic parameters.

The company achieved a record turnover of Rs 11,534 crore during the said period, posting an increase of 14 per cent over the corresponding period last year, SAIL Chairman S K Roongta told reporters here.

Its total income stood at Rs 10,623.87 crore for the said quarter, up by 16.04 per cent compared to Rs 9,155.31 crore for the quater ended last year.

SAIL's net profit for the year ended March 31, 2007 also increased by 54.55 per cent to Rs 6,202.29 crore from Rs 4,012.97 crore last year while its total income increased to Rs 35,865.42 crore from Rs 29,339.01 crore in the said period.

The company achieved an all-time high annual turnover of Rs 39,189 crore and highest-ever profit before tax (PBT) of Rs 9,423 crore during 2006-07. The company's audited financial results for FY07 showed a net profit of Rs 6,202 crore, an increase of 55 per cent.

SAIL also achieved the distinction of becoming the first company in the metals sector to cross market capitalisation of Rs 50,000 crore.

Mr Roongta said SAIL Board has also recommended a dividend of 31 percent on paid-up equity amounting to over Rs 1,280 crore, including the 16 per cent interim dividend paid in March 2007, for the company's shareholders.

The company recorded highest-ever saleable steel production of 3.25 million tonnes (MT) during January-March 2007, taking annual production to a new peak of 12.6 MT during FY07. Total sales of 11.9 MT during the year - a growth of 5 per cent over the previous year was also a new record.

The company continued with its strategy of utilising the available potential of existing units and optimising production of value-added products during the year.

During the year, about 5.25 lakh tonnes of additional finished steel were produced by enhancing overall capacity utilisation to 114 per cent of rated capacity (saleable steel), as compared to 109 per cent during 2005-06, and by improving operational efficiency.

In the fourth quarter, saleable steel capacity utilisation was stepped up to 119 per cent.

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