Feb 13, 2013, 12.42 PM | Source: Moneycontrol.com

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

Steel Authority of India's (SAIL) December quarter profit dropped 23% to Rs 484 crore, year-on-year as higher interest cost and weak rupee continue to dent margins. Sales, however, grew 2% to Rs 11801 crore as demand picked up on improved construction activities.

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.


READ MORE ON  SAIL Q3, steel, forex, infra, construction
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