SAIL’s net profit down 43 percent in Q3 FY 2011-12

Indian state-owned steel producer Steel Authority of India Limited (SAIL) has announced its financial results for the third quarter and the first nine months ended on December 31, 2011 of the Indian fiscal year FY 2011-12.
 
Accordingly, in the third quarter of FY 2011-12, SAIL's net profit decreased by 43 percent year on year to INR 6.3 billion ($128.4 million) due to the increase in coking coal prices and foreign exchange loss. The sales turnover of the company decreased by 4.8 percent to INR 116.8 billion ($2.3 billion) compared to the corresponding period of the previous financial year.
 
In the first nine months of FY 2011-12, SAIL's net profit decreased by 41.7 percent year on year to INR 19.6 billion ($398.4 million). The sales turnover in April-December amounted to INR 355.6 billion ($7.22 billion), up five percent year on year. 
 
Regarding the third quarter results, SAIL chairman Mr. C.S. Verma stated that the uptrend over the preceding quarter performance indicates that the overall steel outlook is positive, adding that 2012 is set to make a good start on the back of stabilizing coke prices, strengthening steel demand and increased production volumes.