Notwithstanding rising input costs, homegrown steel behemoth Steel Authority of India (SAIL) has posted an impressive third quarter result with record net profit of Rs 1,935 crore, a 32 per cent increase over Rs 1,471 crore in the corresponding period last year. The turnover of the navratna PSU during the quarter rose by 11.4 per cent to Rs 10,756 crore. “Riding on the back of improved product mix coupled with substantial increase in production of special grade steel and cost reduction, SAIL has achieved this profitability,” said chairman S K Roongta. Net profit for the company shot up by 20 per cent to Rs 5,160 crore during the nine month period from April to December. SAIL’s hot metal production stood at 11.3 million tonnes (mt) while it produced 10.4 mt of crude steel and 9.6 mt of saleable steel during the first nine months of the current fiscal. “Our plants operated at 121 per cent average capacity utilisation in the third quarter, against 112 per cent achieved in the same period last year,” Roongta said. During the quarter, SAIL reduced its borrowings by Rs 412 crore to Rs 2,792 crore achieving a debt equity ratio of 0.13:1, a new low for the PSU. “The recession in the US economy will not have a major impact in the global steel sector as Southeast Asia in general, and China in particular, have been growth drivers in the past few years,” Roongta said. “We will continue to grow by six-and-half per cent as predicted by IISI as demand in emerging economies is picking up,” he said. On the other hand it is rising costs of raw materials which is bothering the company. Roongta indicated that steel prices in the country could head northward, as prices are on the rose globally and India would not be an exception. “We do not prefer to increase prices. But as a steel producer, I am not happy to pay for higher raw material costs and it may have to be passed on to the consumers,” he said. Maruti zooms with 24% rise in profits NEW DELHI: Maruti Suzuki India backed its steller sales performance with commendable financials in the third quarter of the current fiscal registering a 24 per cent growth in net profit at Rs 467 crore against Rs 376.4 crore in the same quarter last year. Maruti’s total income for the quarter also went up by 27.2 per cent in the quarter at Rs 4,844.8 crore over Rs 3,807.9 crore last year. The company’s sales during the quarter went up by 17 per cent as it sold 2,01,629 vehicles in the domestic market and exported 13,754 units. The company’s performance between April and December 2007 was equally robust. Maruti’s total income during the period grew by 29.4 per cent at Rs 13734.7 crore as against Rs 10617.56 crore in the corresponding period last year. Net profit during the period stood at Rs 14,33.1 crore, up 28.7 per cent over last year. Nalco Q3 net dips 42% to Rs 329 crMUMBAI: National Aluminium Company (Nalco) has posted a 42.46 per cent dip in its net profit at Rs 329.44 crore for the quarter ended December 31, 2007, against Rs 572.6 crore last year. The total income dropped 19.34 per cent to Rs 1,247.26 crore in the latest quarter, from Rs 1,546.4 crore in the quarter ended December 31, 2006.
