SAIL registers PAT of INR 1326 crore in Q1
In spite of input cost pressures and price realizations being far below the significantly high levels obtained in the first quarter of FY ’09, Steel Authority of India Limited recorded profit before tax of INR 2,005.91 crore lower by 28% YoY and profit after tax of INR 1,326.09 crore lower by 27.7% YoY during Q1 of the current financial year.
The company’s net turnover at INR 8,950.64 crore was lower by 16.5% YoY.
These unaudited financial results of SAIL were taken on record here today by the company’s Board of Directors.
The adverse impact of input price increases, especially of coking coal by almost 49% or INR 868 crore and drop in steel prices was partially neutralized by higher production and sales volumes, increase in special and value added steel production, improved operational parameters and aggressive cost efficiencies, resulting in savings to the extent of about INR 570 crore during Q1.
High lights
1. Best ever Q1 saleable steel production & sales and growth in volumes at 4% & 5% respectively
2. Production of value added items up 21%
3. Techno indices improved further.
4. Modernization & expansion related CAPEX more than tripled during quarter.
Domestic sales grew by about 5% YoY with best ever Q1 sales of value added products. Exports at 50,517 tonnes were also up by 13%.
The sales performance was supported by best ever Q1 saleable steel production at 3.06 million tonnes up by 4% YoY. Q1 sales turnover at INR 9,746.75 crore was lower by 20% YoY however, EBDITA to net sales ratio rose to 27% in Q1 from 22.6% in Q4 of FY ’09.
SAIL plants operated at an overall capacity utilization of 111% during the quarter. With continued thrust on production of value added and special steels, the major SAIL plants produced 1.15 million tonnes of these items during Q1, a growth of 21% YoY. The growth areas included electrode-quality wire rods, SAILCOR in HR CR coils, LPG grade HR coils plates etc. Today SAIL produces 61% of its total reinforcement steel output in High Strength Earthquake Resistant grade.
Further improvement in operational efficiencies helped to reduce the impact of lower realizations and higher input costs. Production through the energy-efficient continuous casting route crossed 2.2 million tonnes. Other important techno-economic indices also showed substantial improvement, with reduction in coke rate by 3.5%, specific energy consumption by 1.5% and improvement in blast furnace productivity by 5%.
During Q1, the captive mines of SAIL at Chasnalla, Jitpur and Ramnagore produced about 220,000 tonnes of coal, which was 20% higher YoY. SAIL’s efforts to achieve raw material security received a boost in June ’09 with the Ministry of Coal approving the plan to mine 4 million tonnes of coal from Tasra coking coal mine. As regards the new coal block at Sitanala, its mining plan had been approved in January ’09 and EIA/EMP study has been submitted for environment clearance. With regard to Rowghat iron ore mine in Chhattisgarh, the state government has recommended grant of final forestry clearance in June ’09. Discussions with the state of Jharkhand have been continuing at different levels to satisfactorily resolve the issue of Chiria iron ore mine.
Mr SK Roongta chairman o SAIL while announcing the Q1 results said that “In spite of downturn continuing in global steel markets, the overall demand scenario in India is encouraging. Although input cost pressures are easing now, SAIL’s thrust on operational and cost efficiencies will be intensified in the current and subsequent quarters and we aim to achieve best ever capacity utilization during the year.”
http://www.steelguru.com/news/index/2009/07/31/MTA0ODA0/SAIL_registers_PAT_of_INR_1326_crore_in_Q1.html
In spite of input cost pressures and price realizations being far below the significantly high levels obtained in the first quarter of FY ’09, Steel Authority of India Limited recorded profit before tax of INR 2,005.91 crore lower by 28% YoY and profit after tax of INR 1,326.09 crore lower by 27.7% YoY during Q1 of the current financial year.
The company’s net turnover at INR 8,950.64 crore was lower by 16.5% YoY.
These unaudited financial results of SAIL were taken on record here today by the company’s Board of Directors.
The adverse impact of input price increases, especially of coking coal by almost 49% or INR 868 crore and drop in steel prices was partially neutralized by higher production and sales volumes, increase in special and value added steel production, improved operational parameters and aggressive cost efficiencies, resulting in savings to the extent of about INR 570 crore during Q1.
High lights
1. Best ever Q1 saleable steel production & sales and growth in volumes at 4% & 5% respectively
2. Production of value added items up 21%
3. Techno indices improved further.
4. Modernization & expansion related CAPEX more than tripled during quarter.
Domestic sales grew by about 5% YoY with best ever Q1 sales of value added products. Exports at 50,517 tonnes were also up by 13%.
The sales performance was supported by best ever Q1 saleable steel production at 3.06 million tonnes up by 4% YoY. Q1 sales turnover at INR 9,746.75 crore was lower by 20% YoY however, EBDITA to net sales ratio rose to 27% in Q1 from 22.6% in Q4 of FY ’09.
SAIL plants operated at an overall capacity utilization of 111% during the quarter. With continued thrust on production of value added and special steels, the major SAIL plants produced 1.15 million tonnes of these items during Q1, a growth of 21% YoY. The growth areas included electrode-quality wire rods, SAILCOR in HR CR coils, LPG grade HR coils plates etc. Today SAIL produces 61% of its total reinforcement steel output in High Strength Earthquake Resistant grade.
Further improvement in operational efficiencies helped to reduce the impact of lower realizations and higher input costs. Production through the energy-efficient continuous casting route crossed 2.2 million tonnes. Other important techno-economic indices also showed substantial improvement, with reduction in coke rate by 3.5%, specific energy consumption by 1.5% and improvement in blast furnace productivity by 5%.
During Q1, the captive mines of SAIL at Chasnalla, Jitpur and Ramnagore produced about 220,000 tonnes of coal, which was 20% higher YoY. SAIL’s efforts to achieve raw material security received a boost in June ’09 with the Ministry of Coal approving the plan to mine 4 million tonnes of coal from Tasra coking coal mine. As regards the new coal block at Sitanala, its mining plan had been approved in January ’09 and EIA/EMP study has been submitted for environment clearance. With regard to Rowghat iron ore mine in Chhattisgarh, the state government has recommended grant of final forestry clearance in June ’09. Discussions with the state of Jharkhand have been continuing at different levels to satisfactorily resolve the issue of Chiria iron ore mine.
Mr SK Roongta chairman o SAIL while announcing the Q1 results said that “In spite of downturn continuing in global steel markets, the overall demand scenario in India is encouraging. Although input cost pressures are easing now, SAIL’s thrust on operational and cost efficiencies will be intensified in the current and subsequent quarters and we aim to achieve best ever capacity utilization during the year.”
http://www.steelguru.com/news/index/2009/07/31/MTA0ODA0/SAIL_registers_PAT_of_INR_1326_crore_in_Q1.html
