Calcutta, Jan. 8: Durgapur Steel Plant (DSP), a unit of Steel Authority of India (SAIL), could top up its turnaround with a net profit of over Rs 125 crore in the current financial year after a first-half score of Rs 31 crore.

Sources said the plant, smeared in red ink for much of its life, is poised to register a record sales this year in view of the heavy demand for long products. Expectations of a turnover increase are around 25-30 per cent.

To keep pace with profit and sales target, DSP raised its production efficiency with improvements on almost all parameters. Saleable steel production at over 1.64 million tonnes in 2003 was 103 per cent of its rated capacity compared with its earlier record of 1.55 million tonnes.

Hot metal production stood at 2.01 million tonnes, up from 1.89 million tonnes, which was its previous best. Crude steel production has also gone up to 1.77 million tonnes against its old all-time high of 1.69 tonnes.

DSP managing director S. K. Bhattacharyya said productivity and cost efficiency have improved substantially in the last few quarters. “But there is still room for improvement and we are going ahead,” he said, complementing employees for making this possible.

The plant is also getting considerable investment for a bloomcaster and a couple of finishing mills. These units will save Rs 1200 on every tonne of steel made at the plant, driving up profits by some more notches.

“We have to keep making small investments for technology upgrades, to keep abreast with competition in the market and to be profitable,” Bhattacharyya said.

The plant is focusing on products made at its merchant mill. These include the TMT bars used in building. DSP has invested Rs 32 crore in the mill to improve quality. “Branding our bars and rods will help us break into the niche market,” Bhattacharya said.