With lower net sales realisation and higher finance cost, steel
major SAIL has reported a decline in net profit by over 23 per cent during the
quarter ended December 31.
Chairman and Managing Director C. S. Verma said, “Net sales
realisation in the third quarter (October-December) was overall down by 5.78
per cent. It was 8.14 per cent for flat product and 2.72 per cent for the long
product.†This impacted the profitability though the sales turnover grew by
nearly 1 per cent to 11,801 crore, he added.
He also said globally steel prices are coming down and India
is not an exception which has resulted in lower sales realisation. However, he
was optimistic when he said that steel production in India is much higher than
the world data. In the calendar year 2012, world production grew by just 1.2
per cent, while for India this figure was 4.3 per cent. Simultaneously,
consumption is also growing.
About the modernisation and expansion projects, Verma said
orders worth Rs 58,000 crore have been placed.The company claimed that as a
result of modernisation and expansion, the new sinter plant has commenced
production at Rourkela Steel Plant.
The new Coke Oven Battery and the blast furnace at this
plant are also ready and are likely to start production in a couple of months.
At ISP, Burnpur, despatches from the new sinter plant to Bokaro Steel Plant
have already begun.
The new Coke Oven Battery, the Power & Blowing Station
and the Wire Rod Mill are also ready for operations from this month at Burnpur.
Sourced
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