Higher sales and better price helped state-run steel maker SAIL to post a 10 percent rise in profit after tax to Rs 533 crore for the October-December quarter of the current fiscal.
"Despite a subdued demand environment in the economy, our sales were up by 7 percent and net sales realisation was also higher leading to PAT (profit after tax) to grow by 10 percent," SAIL Chairman C S Verma told reporters here.
The company had hiked prices by up to Rs 1,500 per tonne in the last three months in phases.
The board of the company approved a 20.2 percent interim dividend as against 16 percent last year.
It also approved a 17 percent rise in basic and dearness allowances for around 85,000 of its non-executives leading to around Rs 1,100 crore additional annual outgo.
The wage revision was pending since January, 2012.
During the quarter under review, Steel Authority of India (SAIL) reported a turnover of Rs 12,716 crore compared to Rs 11,801 crore in the year-ago period, recording an eight per growth.
Sales rose to 2.94 million tonnes (MT) during the quarter under review as demand from both flat and long products from end-users went up. Sales of flat steel used in automobiles and white goods sectors rose by 8.6 percent, long products, which find application in construction space, rose by 4.5 percent.
"The increase in sales turnover achieved by SAIL, despite a flat steel market, is an indication that the company is well-placed to meet any market situation," Verma said. India's steel consumption grew by a meagre 0.5 percent during April-December period of current fiscal.
The average net sales realisation, as a result of better price, marginally rose to Rs 35,336 crore during the quarter from Rs 35,168 crore a year ago. Verma said price of steel had stabilised and it was unlikely to fall from here.
The company achieved its highest ever production of value added steel at 1.35 MT in the last quarter, Verma said, adding that all the integrated plants of the company are running at over 100 per cent rated capacity.
"Going forward, we are confident that the product and process improvement currently under way in SAIL as a result of modernisation will bring in greater returns on our investment," he said.
Exports also doubled during the quarter. SAIL expects to end the year with 0.7-08 MT of exports.
SAIL scrip gained 1.74 percent to close at Rs 61.45 on BSE.
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