Steel Authority of India Ltd (SAIL) reported a 9 per cent year-on-year increase in its net profit for the third quarter of fiscal 2014-15. The net profit for the quarter stood at ₹579 crore as compared to ₹532.6 crore in the same quarter last year.

 

Improvement in profit was helped by factors such as enhanced production, better techno-economic parameters, along with a reduction in input costs, particularly imported coking coal, the company said in a statement.

 

Despite the increase in its net profit, the company’s net revenue dropped 3 per cent to ₹11,107.12 crore from ₹11,473.12 crore in the same quarter last year.

 

The company said net revenue was adversely impacted due to the prevailing challenging market conditions, fraught with high imports and consumption of steel remaining almost flat in the country.

 

By the end of the quarter, SAIL had operationalised projects and units worth ₹32,000 crore as part of its modernisation and expansion plan.

 

“Our initiatives taken to bring down energy consumption and optimise raw material utilisation, as well as adoption of modern technologies have helped us improve the techno-economic parameters and stay viable in the current market scenario,” Chairman SAIL C S Verma said.

 

“With new policies of the Government and its thrust on steel intensive sectors, steel demand is likely to rise. SAIL is ramping up its capacity to match this,” he added.

 

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