SAIL quarterly net profit falls 28%

SAIL quarterly net profit falls 28%

High input cost and depreciating rupee,SAIL registered 28% decline in profit at Rs 3,543 cr.

Hit by the high input cost and depreciating rupee,the Steel Authority of India (SAIL) registered a 28% decline in its profit after tax at Rs 3,543 crore during 2011-12 as against Rs 4,905 crore a year ago.

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The company chairman CS Verma said that the affect of the increasing input cost was as high as Rs 4,000 crore.

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“The coking coal prices have gone up from average $213 during 2010-11 to $288 per million tonne during 2011-12. The rupee volatility had an impact of Rs 900 crore. This has resulted into such a decline in our profits,” Verma told reporters after announcing the results on Tuesday.

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The company imports around 12 million tonne from various sources abroad. The demand for coal is likely to balloon further once the steelmaker starts its new blast furnace this fiscal (2012-13).

The steel major has,however,managed to improve its performance during fourth quarter Q4 of 2011-12. The company reported a 3.4% increase in the profit after tax at Rs 2,301 crore during Q4 of 2011-12 as against Rs 2,225 crore in the Q4 of 2010-11. SAIL’s turnover for January-March quarter grew 13% to Rs 14,785 crore compared to Rs 13,135 crore during the same period a year ago.