SAIL reported a 43% dip in December quarter profits, dented
by high coking coal costs, forex losses and lower sales. However, the company
is bullish on March quarter prospects on a rebound in demand from construction
and other segments.
“The high costs of hard and soft coking coal and indigenous
coal impacted the profits by Rs 867 crore and the net profits for December
quarter stood at Rs 632 crore as against Rs 1,107 crore in the corresponding
last year,” SAIL's Chairman, Mr C.S.Verma told reporters.
Volumes were down to 2.62 million tonnes during the quarter
against 3.24 million tonnes. The average sales realisation was Rs 37,326 a
tonne against Rs32,000 tonne in the corresponding last year. The sales were
impacted on account of lower output due to shutdown of some plants for
maintenance during the quarter.
However, Mr Verma is bullish on the outlook in the
January-March quarter, which is the last quarter of the terminal year of the
11th Five Year Plan. “The demand is good and we see a brisk quarter. The prices
are likely to remain firm over the next few months,” he said.
Source: The Business Line
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