Steel Authority of India Ltd (SAIL) on Thursday reported a 12 per cent rise in net profit during the second quarter of 2012-13 fiscal against the same period previous year.
The public sector steel maker recorded a profit after tax (PAT) Rs 543 crore during July-September this fiscal against Rs 485 crore in the same period last year.
Sales turnover stood at Rs 11,976 crore (Rs 11,970 crore). In terms of volumes, SAIL sold 2.62 million tonnes of steel (2.8 mt).
SAIL Chairman C.S. Verma attributed the decrease in volume sales to “depression in the market’’. Sales are expected to go up during the current festival season, he said.
Verma said that higher production along with improvement in key techno economic parameters gave profitability.
With a production of 3.6 mt of hot metal, 3.39 mt of crude steel and 3.18 mt of saleable steel, SAIL recorded a growth of 7 per cent, 5 per cent and 4 per cent, respectively.
The company said it has signed an MoU with the Chhattisgarh State Government for the development of an iron ore mine at Eklama Iron Ore Deposit through a joint venture to be formed between Chattisgarh Mineral Development Corporation Ltd and SAIL.
Eklama Iron Ore Deposit would be a supplementary iron ore source for Bhilai Steel Plant.
Verma said SAIL is scouting for acquisition of coal assets overseas through ICVL. “We are carrying out due diligence in 4-5 locations.’’
ICVL is looking to acquire at least 10 per cent majority stake in coal projects overseas, Verma added.
“In the international market, prices have gone up by $5-10 per tonne. SAIL prices are stable. I do not see any decline in prices. This is because iron ore prices are also firming up,’’ Verma said.
Demand always remains lean in the first two quarter of the year, he added.