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SAIL’s profit falls 28 percent in Q1 FY 2009-10

Friday, 31 July 2009 15:53:51 (GMT+3)   |  
       

India's state-owned fully integrated iron and steel maker Steel Authority of India Ltd (SAIL) has released its performance highlights for the first quarter (ended June 30, 2009) of the Indian fiscal year 2009-2010.

In the period in question, SAIL's turnover amounted to Rupees 97.47 billion (US$2.032 billion), decreasing by 20 percent year on year; its EBIDTA totaled Rupees 24.16 billion (US$504 million), down 24 percent, while its profit after taxes reached Rupees 13.26 billion (US$276.55 million), corresponding to a decline of 28 percent, all compared to the same period of the last fiscal year.

In the first quarter of FY 2009-10, SAIL's crude steel production totaled 3.27 million metric tons, increasing by two percent, while its special steel production reached 1.14 million metric tons, up 21 percent, both compared to corresponding period of the last fiscal year. SAIL's hot metal production of 3.46 million metric tons remained at the same level as in Q1 FY 2008-09. Meanwhile, the company's saleable steel production amounted to 3.06 million metric tons, recording an increase of four percent year on year.

In Q1 FY 2009-10, SAIL's average capacity utilization ratio was 111 percent for saleable steel production and 101 percent for hot metal output.

According to the company's release, after the implementation of the ongoing phase of modernization and expansion projects to be completed by 2012, SAIL's annual hot metal output capacity will reach 23.5 million mt from the current 15.2 million mt, its annual crude steel capacity will increase to 21.4 million mt from 14 million mt, while its saleable steel capacity will rise to 20.2 million mt per year from 13 million mt.

Moreover, the company plans to introduce new products, including auto grade cold rolled products, galvannealed coils, plates and pipes to meet up to API 100 grade specification, heavy beams in sizes up to 1,100 mm to support increasing infrastructural requirements, rails for metro and wider plates in the size of 4,500 mm.


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