Indian steelmaker Steel Authority of India (SAIL) has issued its financial results for the first quarter (Q1) of 2010 and for the financial year ended on March 31, 2010, stating that company increased its profitability in Q1.
Net income was Rupees 20.85 billion ($449 million) in the three months ended March 31, compared with a net income of Rupees 14.85 billion a year earlier, increasing 40 percent. The company also pointed out that net sales saw a minor increase of two percent to Rupees 119.6 billion ($2.58 billion) from Rupees 117.9 billion in the corresponding period of 2009.
Meanwhile, the company said that its net income was Rupees 67.54 billion ($1.38 billion) in the year ended March 31, compared with a net income of Rupees 61.7 billion a year earlier, increasing nine percent. The company also pointed out that net sales saw a decrease of seven percent to Rupees 405.5 billion ($8.73 billion) from Rupees 435.9 billion in the corresponding period of the previous year.
SAIL said that its improved profitability in Q1 was mainly due to its market-oriented product-mix, to the 37 percent increase in production of value-added steels and several cost efficiency measures. Improved sales realization during the quarter and reduction in cost of some inputs like imported coking coal and ferroalloys also boosted the bottom line.