Steel Authority of India Limited (SAIL), on Tuesday, announced a growth of 3 per cent in its standalone net profit to Rs.1,576.98 crore during the fourth quarter ended March 31, 2012, riding on the back of a record Rs.50,000 crore turnover.
The company beat the predictions by market analysts and posted net profit instead of an expected fall of 16-20 per cent in profits. It reported a net profit of Rs.1,530.61 crore in the corresponding quarter of 2010-11. Net sales of the company was up 12.17 per cent at Rs.15,079 crore against Rs.13,339 crore, according to SAIL Chairman C. S. Verma.
For the first time in the history of the company, Mr. Verma said SAIL had achieved gross sales turnover of over Rs.50,000 crore during the last fiscal due to good performance during the January-March quarter. The company reported a standalone gross sales turnover of Rs.50,348 crore in 2011-12 up 7 per cent over the previous year's Rs..47,041 crore.
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“It is a matter of great pride that SAIL's turnover crossed the Rs.50,000-crore mark during a year in which the global economy faced many challenges. With 2012 having begun on a positive note for us, and our strategic initiatives in several areas taking firm shape, our outlook is bright,” he told journalists here.
However, the net profit of the company was down 27.8 per cent at Rs.3,542.72 crore in 2011-12, largely due to increase in input costs, amounting to over Rs.4,000 crore, he added.
The cost increase was mainly due to rise in the cost of imported coking coal to $288 from $213 a tonne in the previous year. The volatility in dollar-rupee valuations also had an adverse impact of around Rs.900 crore.
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Shares of the company closed at Rs.93.15 apiece on the BSE on Tuesday against Rs.93.40 on Monday.