SAIL net profit falls 17%
State-owned Steel Authority of India (SAIL), the largest steel maker in the country, reported 17 per cent decline in its net profit for the second quarter.
SAIL’s net profit stood at Rs 1,663.49 crore as compared to a net profit of Rs 2009.60 in the same period last year, backed by lower sales during the period and its merger with Bharat Refractories Ltd (BRL).
SAIL Chairman S K Roongta, added, “The biggest impact on the profit was on account of lower price realisation. Last year, in the second quarter, steel prices were at historic peak.”
The firm hopes better performance in the third quarter as demand has started to pick up and prices are also showing improvement. SAIL hopes 11-12 percent increase in demand during the third quarter, above the forecasts of 9 per cent growth in steel demand in India by the World Steel Association.
Roongta, added, “The government’s thrust on the infrastructure sector will give a fillip to steel demand in this fiscal.” He said that the firm employed a number of cost saving measures during the second quarter that helped to offset the losses met by the steel firm because of low demand in the market.
