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 quarters.
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 foreign
exchange variation on account of weak rupee hit the earnings by Rs 579 crore.
However, an increase in sales
volumes and net sales realization 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 tons during the quarter, whereas sales grew
marginally to 3 million tones. Net sales realizations improved by over 15 per
cent to Rs 36,230 per tonne as against Rs 31,325 in the corresponding last
quarter.
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