New Delhi, Oct. 30: The Steel Authority of India Limited (SAIL) has posted a 28 per cent increase in net profit for the second quarter ended September 30 at Rs 1,442.81 crore compared with Rs 1,126.76 crore in the year-ago period.

“The performance of the second quarter enabled the company to achieve its highest-ever first-half net profit of Rs 2,829 crore, registering a growth of 26 per cent over the same period last fiscal,” SAIL chairman S.K. Roongta said.

The second-quarter turnover of the steel firm went up 17 per cent year-on-year to Rs 9,586 crore. The turnover for the first half grew 22 per cent to Rs 17,998 crore.

Rising steel prices have helped SAIL increase profits during the current fiscal. However, Roongta feels that steel prices could come down from these peak levels in future as the market has heated up and a correction could not be ruled out.

During the first six months of 2006-07, SAIL produced 6.01 million tonnes of saleable steel, representing a growth of 6 per cent.

SAIL’s borrowings were reduced to Rs 3,882 crore at the end of the second quarter against Rs 4,000 crore last year. This improved the debt-equity ratio of the company to 0.25:1 from 0.29:1 at June-end this year

The board of the company also accorded in-principle approval for five new projects involving a total investment of Rs 700 crore at its meeting today. The new proposals include modernisation and expansion of the Durgapur steel plant’s merchant mill, installation of a new coke oven gas holder at the Rourkela steel plant and a new turbo-blower for the Bokaro steel plant.

The other two proposals pertain to the installation of 650-tonnes-per-day air separation unit and an electro-magnetic stirrer at the Bhilai steel plant.

Roongta said, “SAIL has maintained sustained growth and profitability. While implementing our growth plans for the future, there will be a special thrust on utilising the current potential of our human resources and other assets to the fullest extent.”