Lower sales and higher finance costs pulled down Steel Authority of India’s net profit 26.2% in the January-March quarter to Rs 334 crore.
Sales volumes declined 7.6% to 3.16 MT, leading to a 14% fall in turnover to Rs 12,886 crore during the quarter from Rs 14,987 crore in the corresponding quarter a year ago. Finance costs of the company rose to Rs 427 crore from Rs 313 crore. EBIDTA for the quarter was also down by 15.7% to Rs 1,209 crore.
Production of crude steel by the company, however, increased 10% to 3.72 million tonnes during the January-March quarter against 3.25 MT a year earlier.
For the full year, net profit was down 20% to Rs 2,093 crore from Rs 2,616 crore, pulled down by lower sales and a whopping, nearly Rs 500-crore rise in finance costs, amounting to Rs 1,454 crore.
The company produced 2% more crude steel in 2014-15 than it did in the previous fiscal, but sales volumes were 3% lower at 11.71 MT. Turnover was down 2.39% to Rs 50,627 crore. The company’s board has recommended a total dividend of 20% for the year.
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