SAIL losses surge 96%

NEW DELHI, JULY 31: Steel Authority of India Ltd (SAIL) today announced 96.1 per cent increase in losses for the quarter ended June 30 at...

NEW DELHI, JULY 31: Steel Authority of India Ltd (SAIL) today announced 96.1 per cent increase in losses for the quarter ended June 30 at Rs 610 crore as against Rs 311 crore recorded in the corresponding period last year.

The huge loss was mainly due to higher interest burden at Rs 576 crore, up by 32 per cent over same period last year and higher depreciation during April-June 1999 which stood at Rs 311 crore showing an increase of 25 per cent, according to the unaudited provisional results.

With domestic demand continuing to lag behind supplies, selling prices came under heavy pressure and despite posting a growth of 15 per cent in domestic sales quantum, net sales realisation declined sharply in first quarter this year.

Commenting on the financial performance of first quarter, SAIL chairman and managing director Arvind Pande said "in the long run, export competitiveness is the only solution – a path on which we have already embarked". The trend of rising sales and controlling operational costs wouldnot be accentuated in future, Pande said adding that by itself, these would not be adequate and need to be supported by a comprehensive restructuring of the company.

To offset the higher capital charges comprising higher interest and depreciation to the tune of Rs 200 crore during the first quarter this year, SAIL resorted to identifying internal measures like cost reduction and revenue enhancement. SAIL has managed to save Rs 133 crore through cost reduction measures including increased operational efficiencies. For the current financial year, the company has targeted a saving of over Rs 1,000 crore on this account.The company has also claimed that all critical techno-economic parameters showed improvements ranging between 0.8 to 3.9 per cent.

Lloyds Steel posts Rs 47.34 cr loss

MUMBAI: Lloyds Steel of the Guptas has continued its dismal performance with its net losses going up sharply to Rs 47.34 crore during the first quarter of fiscal 2000 from Rs 26.27 crore suffered during the same periodof last year. It had suffered a big loss of Rs 197.90 crore during the year ended March 1999.

Sales during the first quarter of fiscal 2000 dropped sharply to Rs 136.42 crore from Rs 205.52 crore in the corresponding period last year. The financial and similar charges have gone up to Rs 42.59 crore from Rs 34.48 crore. The company suffered a higher gross loss of Rs 30.78 crore against Rs 10.52 crore same period last year. The provision for depreciation amounted to Rs 16.56 crore against Rs 15.75 crore.