SAIL Q4 net dips 72% to R446 cr on stagnant growth

Written by fe Bureau | New Delhi | Updated: May 31 2013, 06:44am hrs
Steel Authority of India (SAIL) has reported a 71.68% decline in net profit to R446.53 crore for the fourth quarter ended March, against R1,576 crore during the corresponding period last year, due to sharp fall in net sales realisation and stagnant growth in the sector.

The sharp decline in net sales realisation of 11% per tonne of steel has adversely affected the profitability by R1,347 crore. The provision of R460 crore taken on account of revision in wages for acturial valuation has impacted the profitability for this quarter alone, SAIL director CS Verma said at a conference.

For the whole year 20012-13, the company reported a drop in net profit by 39%. It reported a net profit of R2,170.35 crore against R3,542.72 crore in 2011-12. Gross sales turnover was R49,350 crore, almost equal to that in 2011-12.

The company produced 13.4 million tonnes (MT) of crude steel and operated at 103% of its capacity. Globally the growth in production of crude steel in 2012 was 1.2% with a capacity utilisation of 80%, remaining a surplus capacity of 20%. Domestically, we have witnessed a growth in crude steel of 2.1%, Verma added.

The company would be adding 5 MT of additional capacity this year.