Indian steelmaker Steel Authority of India Limited (SAIL) has recently issued its unaudited financial results covering the July-September period of 2010 or the second quarter (Q2) of the financial year 2010-11.
The company reported a net profit of Rupees 10.9 billion ($245 million) for the quarter in question, marking a decrease of 34 percent over the corresponding period of last year. The company's sales turnover during Q2 FY 2010-11 was Rupees 110.7 billion ($2.51 billion), nine percent higher year on year and 18 percent higher quarter on quarter. The company said that the variation in profit was primarily caused by the increase in coal input price.
In volume terms, sales at 3.03 million mt during the quarter were 30 percent higher than in Q2 of the previous financial year, with value-added sales accounting for 38 percent of total sales.
Announcing the Q2 FY 2010-11 results, SAIL chairman C.S. Verma said, "We have been able to withstand external market conditions, be it substantial increase in input costs or pressure on margins. This has been possible due to increased sales and optimization of product mix. With input costs likely to stabilize in the coming weeks, we are confident of overcoming the impact of the market."