SAIL Q1 posted 35.25 per cent fall in net profit

New Delhi, August 14 – State-owned steelmaker SAIL on Wednesday reported a 35.25 per cent fall in standalone net profit to Rs 450.91 crore during the April-June quarter as revenue declined and costs rose.

 

The largest domestic steelmaker had posted a profit of Rs 696.41 crore in the corresponding quarter of the previous financial year.

 

Income from operations dropped 4.73 per cent to Rs 10,267.91 crore from Rs 10,777.5 crore a year earlier, SAIL said in a filing to the BSE.

 

All SAIL's major plants, including Bhilai, Bokaro, Durgapur and Rourkela, recorded a fall in revenue.

 

Profitability was adversely affected due to a fall in net sales realisations (NSR) per tonne, SAIL said in a separate statement.

 

"The sharp decline in NSR of 10.9 per cent per tonne of steel in Q1FY'14 due to subdued market conditions adversely affected the profitability of SAIL, although record first-quarter production of 3.2 million tonnes of saleable steel was achieved," it said.

 

Total expenditure at Rs 9,693.50 crore was higher than Rs 9,664 crore a year earlier due to a 15 per cent increase in employee benefit expenses to Rs 2,294.79 crore.

 

Finance costs rose 53.6 per cent to Rs 191.82 crore, while other income declined 18.78 per cent to Rs 226.17 crore. SAIL shares fell 1.69 per cent to Rs 43.60 at the close on the BSE.

 

Source: TOI