SAIL Q3 net down 23% on higher finance cost, weak Re

Moneycontrol Bureau

Steel Authority of India's (SAIL's)  December quarter profit  dropped 23% to Rs 484 crore, year-on-year as higher interest cost and a weak rupee continued to dent margins. However, sales grew 2% to Rs 11801 crore on better demand from construction and infra companies.

The company had to shell out Rs 222 crore toward finance cost, up 20%,YoY . During the period, forex loss narrowed down to Rs 33.71 crore from Rs 466.28 crore,YoY.

Shares of the company declined marginally to Rs 80.75 post earnings announcement. Did you read: MMTC, RCF, SAIL, Nalco sell-off as per plan: Govt

Going ahead, SAIL's operational performance may be impacted by higher employee expense and cost over-run in its brownfield expansion projects. The state firm is keen to double capacity to 24 million tonnes by FY15.