New Delhi, May 28: Steel Authority of India Ltd’s (SAIL) standalone net profit rose just 1.35 per cent to Rs 452.58 crore during the quarter ended March from Rs 446.53 crore in the same period a year ago.
The marginal growth in profit has been attributed to wage revision and higher expenses.
“We have to provide Rs 471 crore towards the wage revision of non-executives of the company during the fourth quarter, which basically cut into our profit margins during the January-March period, but we registered an impressive 20.6 per cent growth in net profit at Rs 2,616 crore in 2013-14,” chairman C.S. Verma said.
The company had approved wage revisions for 85,000 non-executives, which were pending since January 2012.
Total expenses rose 10.37 per cent to Rs 12,804.67 crore from Rs 11,600.58 crore in the corresponding quarter of 2012-13.
Total income rose to Rs 13,509.21 crore from Rs 12,284.74 crore a year earlier.
For the financial year ended March, the steel giant’s profit increased 20.6 per cent to Rs 2,616 crore from Rs 2,170 crore in 2012-13.
Gross turnover grew over 5 per cent to Rs 51,866 crore from Rs 49,350 crore in 2012-13. “The thrust on development of infrastructure and industry would provide more avenues for steel consumption. This certainly augurs well for the Indian steel industry,” Verma said.
The company produced 12.9 million tonnes (mt) of saleable steel in 2013-14, an increase of 4 per cent over the previous fiscal. “SAIL’s focus in the current fiscal would be to complete the balance facilities under our modernisation and expansion programme and ramp up production from the new units in the shortest possible time,” he added.
Continued emphasis on value-added production resulted in the output of 5.4mt of special quality steel last fiscal against 5.09mt in 2012-13. “The corresponding rise in total sales was 8.6 per cent at 12.07mt. Growth in domestic sales was in conjunction with growth in exports of 28 per cent in 2013-14,” Verma said.