Indian state-owned steel producer Steel Authority of India Limited (SAIL) has announced its financial results for the fourth quarter and the full financial year ended March 31.
Accordingly, in the fourth quarter of FY 2012-13 SAIL's net profit decreased to INR 4.46 billion ($79.1 million) compared to INR 15.76 billion in the same quarter of the previous financial year. The company's gross sales revenues amounted to INR 136.6 billion ($2.42 billion), decreasing by 7.6 percent year on year, even though the sales volume was marginally higher.
During the full financial year, the company registered a net profit of INR 21.7 billion ($384.85 million), down 39 percent compared to the previous financial year. The gross sales revenues of SAIL decreased by two percent year on year to INR 493.5 billion ($8.75 billion).
SAIL stated that it produced 13.4 million mt of crude steel in FY 2012-13, increasing by one percent year on year, amid the challenging market conditions in the given period arising from demand stagnation. In line with its long-term objective of increasing the proportion of value added steel in the overall product range of SAIL, the production of special steels was scaled up to 5 million mt, up by four percent year on year. The company also stated that it commissioned projects worth INR 55 billion ($975.4 million) in the financial year in question, within the scope of modernization and expansion plans.
SAIL chairman Mr. C.S.Verma expressed confidence that depressed market conditions will improve with recent measures to facilitate faster clearance of projects. He further stated that the new production capacities will be added to increase the total capacity to 19 million mt from 14 million mt by the end of the current financial year.