New Delhi : Buoyed by higher sales and price of steel, state-run Steel Authority of India reported 18 per cent increase in net profit at Rs 530 crore for April-June quarter.
The state-run steel maker, which had clocked Rs 451 crore net profit in the corresponding quarter a year ago, indicated that it will maintain the momentum with demand being “resurgent” as the market has “firmed up”.
“In view of the improved sentiment and confidence across sectors with special emphasis on major infrastructure projects, we are focused in the direction of commissioning balance modernization facilities at the earliest and ramp up production from already operationalised units to meet the growing steel demand in the coming days,” SAIL Chairman C S Verma said after announcing results.
Net sales realisation of the company rose to Rs 36,858 per tonne during the quarter from Rs 35,777 a tonne. Its sales also rose to 2.76 million tonnes (MT) during the April-June quarter against 2.62 MT during the same period last year. Both these factors helped the company to improve its turnover to Rs 12,515 crore, registering a growth of 10 per cent over the same period last year.
During the first quarter, the net worth of the company increased to Rs 42,980 Crores as on 30.06.14 as compared to Rs 41,476 Crores on 30.06.13.
Verma said the hot metal capacity of the company has gone up to 17.5 million tonnes per year (MTPA) and is slated to touch to 19.5 MTPA by the end of the current year. The current phase of the expansion, taking the company’s capacity to 23.5 MTPA, would be over next year. He said SAIL has plans to take its capacity further to 50 MTPA by 2025 in the next phase. SAIL has already put into operation units worth Rs. 22,000 Crores of investments and the modernization is reaching its completion at the right time which will enable the company to reap the benefit of a rising steel demand, buoyed by the government’s continued thrust on development.