Steel Authority of India Ltd reported a 55 per cent drop in net profits for September quarter, hurt by increased input costs, weak rupee and increased manpower charges.
SAIL reported a net profit of Rs 494.64 crore on revenue of Rs 10,979 crore for the September quarter as against a net of Rs 1090 crore on revenue of Rs 10747 crore in corresponding last quarter.
Mr C.S.Verma, Chairman, SAIL said high coking coal prices, foreign exchange losses and rise in manpower costs impacted the September quarter profits by Rs 2460 crore. High coking coal prices dented the profits to an extent of Rs 1071 crore, whereas forex variation on account of weak rupee hit the earnings by Rs 579 crore.
However, an increase in sales volumes and net sales realisation helped reduce the impact and net profits for the quarter were lower by Rs 877 crore, Mr Verma said.
Production of saleable steel grew 1 per cent to over 3.06 million tonnes during the quarter, whereas sales grew marginally to 3 million tonnes. Net sales realisations improved by over 15 per cent to Rs 36,230 per tonne as against Rs 31,325 in the corresponding last quarter.
Post-results, the SAIL scrip shed 3 per cent to close at Rs 109.20 on the BSE on Thursday.