New Delhi, Aug 06: India's state-owned Maharatna SteelAuthority of India Ltd (SAIL) reported 23.82% drop in its net profit at Rs 6.96 billion for April-June quarter as compared to Rs 8.48 billion in corresponding period last fiscal.
SAIL in a statement said that profit fell mainly due to higher input costs and foreign exchange fluctuations, which saw the Rupee weakening by a steep 21% in Q1FY13 over same period last fiscal.
Commenting on the Q1 result, Chairman SAIL C S Verma said,“We are optimistic about the domestic market which has the potential to strengthen as infra-related activities pick up. Our focus on bringing in new capacities will ensure that we are well positioned to leverage the market.”
The company’s turnover for April-June (Q1) of FY ’13 almost remained flat at Rs 119.12 billion against the same period last fiscal.
The impact of higher input costs was, however, partially neutralized by higher Net Sales Realizations in Q1FY13 , which grew by 8.5% compared to the corresponding period last year.
SAIL took several internal measures which yielded a richer product mix in Q1 of FY13 with production of value-added steel growing by 8% over the same period last fiscal.
The company said that the Modernization & Expansion Plan (MEP) of the company is moving ahead as planned. During the first quarter of FY13 capital expenditure was Rs 19.60 billion. Projects completed during the quarter included Sinter Plant at Rourkela Steel Plant (RSP), new Barrel Reclaimer at the Raw Material Handling Plant of Durgapur Steel Plant (DSP), a new Ladle Furnace No.-2 at Alloy Steels Plant (ASP), Durgapur among others.
SAIL signed a joint venture agreement for setting up a Wagon Components Manufacturing facility in Jellingham, West Bengal , with an estimated capital outlay of Rs 2 billion for the project. This will have a capacity to produce 10000 bogies and 10000 couplers per month.
SAIL also signed a memorandum of agreement with Kobe Steel of Japan for setting up a 0.5 million tonne per annum iron nugget making plant using Kobe’s patented ITmK3 technology at SAIL’s Alloy Steels Plant in Durgapur, West Bengal, India with an investment of Rs. 15 billion.