With Rs 700-cr Savings, SAIL Sees Turnaround This Fiscal

New Delhi, May 20: | Updated: May 21 2003, 05:30am hrs
Hoping to return into the black in the current fiscal, Steel Authority of India (SAIL) is likely to witness a hefty 70 per cent reduction in losses, mainly due to Rs 700-crore savings on account of lower interest outgo and an intensive cost reduction drive.

Riding on the strength of a growth of seven per cent in production and six per cent in sales, we are likely to reduce our losses by more than 70 per cent. Sound financial management helped us bring down our debt by Rs 800- crore, and outgo on interest payment by Rs 300-crore while an intensive cost reduction drive entailed a saving of Rs 400-crore, SAIL Chairman VS Jain said.

Jain said the challenge before the company was to achieve a turnaround in the current fiscal and improve bottomline to make up for the past few years.

He said a 10 per cent increase in production and key efficiency parameters from where we ended last fiscal could translate into Rs 1,000-crore improvement in the companys bottomline.

Asking the units to gear up, Jain in the latest issue of Sail News, said all we need is to stick to the targets which we have prepared for each unit after due deliberation.

The steel major has already chalked out an aggressive strategy for exports which are expected to go up five times, according to company sources.

The growth in SAILs exports for April 2003 was over five times the 17,000 tonnes exported in the corresponding month last year.

According to SAIL sources, it is estimated that the other Indian flat steel producers together exported around 175,000 tonnes during the same period. (PTI)