SAIL Q 2 sales grows 15%; turnover up 7%

OST Business Bureau

Rourkela, Nov 11:

SAIL’s thrust on marketing resulted in a sales growth of 15% in Q-2 of FY’14 with total steel sales reaching 3.015 million tonnes, as against 2.616 million tonnes in the corresponding quarter of last year. Notwithstanding the market slowdown and almost flat steel consumption in the country, the sales turnover of the company, at Rs 12,802 crores, was up 7% in Q-2 of FY’14. The growth in sales turnover would have been higher but for the subdued market conditions, which resulted in a decline of 6% in the net sales realisation (NSR) in the July-Sept’13 quarter, a SAIL press release said.

The 2nd quarter production in the current fiscal, at 3.26 million tonnes of saleable steel by SAIL, was up 3% over CPLY. Production of value added steel in Q-2 at 1.33MT, recorded a y-o-y growth of 4%.

The unaudited financial results of Steel Authority of India Limited (SAIL) for the quarter July-Sept ’13 were taken on record by its Board of Directors today. The company recorded Profit After Tax (PAT) of Rs. 1180 crores in Q2 of FY14, up 117% compared to Rs 543 crores in CPLY.

For the half year of the current fiscal, SAIL recorded Rs 1631 crores of Profit After Tax, which was 32% higher than the corresponding period of previous year. In an effort to reduce costs, the company achieved a reduction in its average rate of borrowing, which was down to 5.84% in April-Sept’13 compared to 6.14% in CPLY.

During the half-year, net worth of the company increased to Rs 42,657 crores as on 30.9.13 compared to Rs 41,025 crores as on March 31, 2013.

Chairman, SAIL CS Verma said, “The growth trend in our sales augurs well as we are about to tap the benefits of enhanced production with the country’s largest BF, slab caster and other facilities ramping up fast at RSP. We, at SAIL, are set to supply higher quantum of steel to meet the country’s growing demand for quality steel.”