SAIL’s PAT at Rs, 1,663 crore in Q2

SAIL’s PAT at Rs, 1,663 crore in Q2

The unaudited financial results of Steel Authority of India Limited (SAIL) for July-September (Q2) of FY ’10, taken on record by the company’s Board of Directors here on Friday, showed profit after tax (PAT) at Rs. 1,663 crore, an improvement of 25% in performance over the previous quarter, lower by 17.3% over the corresponding period last year (CPLY). Performance in Q2 improved over the previous quarter (Q1 FY ’10) with the help of several management initiatives contributing nearly Rs. 700 crore, resulting in best-ever Q2 sales and special steel production, substantial additional realisation from sales of secondary products and all-round cost efficiency. The adverse impact due to lower price realisations in Q2 FY ’10 over CPLY was of the order of Rs. 3,000 crore. This could be partially offset through several internal actions which resulted in 14% increase in sales volume, 15% increase in value-added steel production, best-ever key techno-economic parameters, viz. coke rate, total energy consumption, blast furnace productivity, and prudential financial management.

Together with this, substantial reduction in operating costs, repair and maintenance, stores & spares, administrative expenses, etc., resulted in overall savings of over Rs. 1,000 crore in Q2. The company’s capital expenditure of Rs. 2,450 crore in Q2 has been more than double of CPLY. During H1, it touched Rs. 4,920 crore – 2.5 times that of H1 FY

Courtesy: Ministry of Steel release