SAIL Registers 5% Growth of Sales
OREANDA-NEWS. February 14, 2012. SAIL's turnover for the first nine months at Rs. 35563.73 crore was 5 % higher than CPLY. Profits were impacted compared to CPLY, due to higher input costs and foreign exchange variations. The company's PBT and PAT during the April-December'11 period were recorded at Rs. 2849.51 crore and Rs. 1965.74 crore, lower by 42.7 % and 41.7 % respectively, over CPLY. The difference in profit (PBT) at Rs. 2120 crore, was primarily because of impact of coking coal price increase at Rs. 1849 crore, and foreign currency variation of Rs. 1079 crore. SAIL's net worth grew by Rs. 2503 crore to Rs. 38618 crore as on 31st December'11. SAIL Board approved interim dividend for its shareholders at 12 % of the company's paid-up capital.
Reflecting the uptrend in performance over the preceding quarter, SAIL Q3 profit before tax (PBT) at Rs. 903.76 crore and Q3 profit after tax (PAT) at Rs. 632.12 crore, registered a growth of 26 % and 28 % respectively, over Q2FY12. Q3 PBT was down by Rs.724.44 crore (44%) over CPLY, owing to impact of Rs. 578 crore on account of increase in prices of Coking Coal, and Rs. 499 crore on account of foreign exchange variation. The impact of these two factors, among others, also brought down PAT by Rs. 475.35 crore (43 %). The turnover for Q3FY12 at Rs. 11685.95 crore was 4.8 % less than CPLY.
Several ongoing projects in SAIL steel plants were completed in Q3FY12, including rebuilding of Coke Oven Battery-II at Bokaro, installation of turbo-blower no. 8 at Bokaro, installation of 60-tonne ladle furnace at ASP and Tonnage Oxygen Plants at Rourkela & Bhilai. Commissioning activities for pickling line cum tandem cold Mill (PLTCM) for Cold Rolling Mill at Bokaro were started.
SAIL Board has accorded in-principle approval for bearing the expenses of two CRPF battalions for facilitating a safe environment in Rowghat region. Tender has been floated for a pelletisation (4 MT)-cum-beneficiation (10 MT) project at Gua iron ore mines, and is likely to be finalized this year. This is a step towards raw material securitisation and bringing in environment-friendly mining technology.
During Q3FY12, SAIL moved one step ahead in its journey to become a global player. The SAIL-led consortium AFISCO (Afghan Iron & Steel Consortium), which had submitted its bid for mining exploration rights at Hajigak, having an estimated reserve of 1.7 billion tonnes of iron ore, won the status of 'Preferred Bidder' for blocks B, C and D of the mines with an estimated reserve of 1.28 billion tonnes of high-grade magnetite iron ore (with 62-64% Fe content). 'SAIL-Kobe Iron India Pvt. Ltd.' name has been approved for 0.5 million tonnes ITmK3 plant. Subsequent to signing of term sheet for this plant, environment impact study & site survey including soil investigation has been started at ASP,
A new SPV company 'SAIL-Sindri Projects Ltd.' has already been incorporated in November'2011, for revival of the closed units of FCIL. SAIL is awaiting BIFR clearance for taking further action.
SAIL was conferred 'Industry Excellence Award' by Institution of Engineers (
Reviewing the Q3 performance SAIL Chairman Shri C.S.Verma said, The uptrend over the preceding quarter performance is an indication of the overall steel scenario becoming positive, and internal measures yielding desired results. With prices of coke stabilising, steel demand strengthening and increased production volumes in the offing for SAIL, 2012 is likely to be a year of fresh beginnings.