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Updated: August 15, 2013 00:01 IST

SAIL net profit drops 35% in Q1

Sujay Mehdudia
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C.S. Verma
The Hindu C.S. Verma

All SAIL’s major plants including Bhilai, Bokaro, Durgapur and Rourkela recorded a fall in revenue.

Notwithstanding the 35.25 per cent fall in standalone net profit at Rs. 450.91 crore during the April-June quarter, Steel Authority of India Limited (SAIL) continued with its modernisation and expansion plans during the first quarter .

The state-run steel marker had posted a profit of Rs. 696.41 crore in the corresponding quarter of the previous financial year. Income from operations dropped 4.73 per cent to Rs. 10,267.91 crore from Rs. 10,777.5 crore a year earlier. The company’s major plants, including Bhilai, Bokaro, Durgapur and Rourkela, recorded a fall in revenue.

In a statement here, the company said the fast-tracking of its modernisation and expansion plans resulted in the commissioning of projects worth Rs. 2700 crore in the first quarter, the highest in any quarter since inception. Under the modernization plans, cumulative orders worth Rs. 58,579 crore were placed and an expenditure of Rs. 46,064 crore incurred until June. Significant projects which commenced production during this quarter included the new 7 meter tall battery complex along with coke dry cooling plant and the 2500-mm wide slab caste at Rourkela Steel Plant.

Total expenditure at Rs. 9,693.50 crore was higher than Rs. 9,664 crore a year earlier due to a 15 per cent increase in employee benefit expenses to 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.

In an effort to reduce costs, the company achieved a reduction in its average rate of borrowing, which was down to 5.5 per cent in . SAIL Chairman C.S. Verma said that the much-awaited capacity addition in SAIL had taken concrete shape with the commencement of hot metal production from the blast furnace at Rourkela steel plant.

Sundram Fasteners

Sundram Fasteners has reported a total income of Rs. 523.53 crore in the first quarter ended June 30, 2013 against Rs. 581.98 crore in the same period in the previous year. Exports accounted for Rs. 175.54 crore against Rs. 188.10 crore. The net profit after tax stood at Rs. 29.45 crore against RS. 31.24 crore in the year-ago period.

Orchid Pharma

Orchid Pharma, which extended the financial year by six months to September 30, 2013, has reported a net loss of Rs. 54.50 crore in the fifth quarter ended June 30, 2013, against Rs. 50.80 crore in the three months ended June 30, 2012. Revenue for the quarter stood at Rs. 249.87 crore against Rs. 316.60 crore. In the 15 months ended June 30, 2013, total revenue was Rs. 1,476.33 crore and the net loss Rs. 357.18 crore.

Arvind Remedies

Arvind Remedies, producer of branded and generic pharmaceutical products, has achieved 31 per cent rise in its net sales at Rs. 183 crore in the first quarter ended June 30, 2013 against Rs. 140 crore in the same period in the previous year. The net profit registered a rise of 76 per cent to Rs. 16 crore from Rs. 9 crore in the year-ago period. Dr Arvind B Shah, MD & CEO said in a release that during the quarter, the focus was on branded products in the domestic market .

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