New Delhi, Aug. 14: Steel Authority of India Ltd (SAIL) aims to double its exports this fiscal at a time of dull market conditions within the country. The PSU reported a 35.25 per cent fall in standalone net profit at Rs 450.91 crore in the first quarter ended June as revenues declined and costs rose.
The largest domestic steel maker had posted a profit of Rs 696.41 crore in the corresponding quarter of the previous financial year.
Chairman C.S. Verma said last year the PSU had exported about 3.3 lakh tonnes of steel, which was expected to increase to around 7 lakh tonnes this year.
Income from operations dropped 4.73 per cent to Rs 10,267.91 crore from Rs 10,777.5 crore a year earlier.
All SAIL’s major plants, including the facilities at Bhilai, Bokaro, Durgapur and Rourkela, reported a fall in revenues. Profitability was adversely affected because of a fall in net sales realisations (NSR) per tonne.
“The sharp decline in NSR of 10.9 per cent per tonne of steel in the first quarter because of subdued market conditions adversely affected the profitability of SAIL, although record first-quarter production of 3.2 million tonnes of saleable steel was achieved,” Verma said.
Total expenditure at Rs 9,693.50 crore was higher than Rs 9,664 crore a year earlier because of a 15 per cent rise in employee benefit expenses at Rs 2,294.79 crore.
Finance costs rose 53.6 per cent to Rs 191.82 crore, while other income declined 18.78 per cent to Rs 226.17 crore.