Date:26/05/2005 URL: http://www.thehindubusinessline.com/2005/05/26/stories/2005052602260200.htm

Back SAIL posts record profit of Rs 6,817 cr

Our Bureau

Mr V.S. Jain, Chairman, SAIL, addressing a press conference in the Capital on Wednesday. - Kamal Narang

New Delhi , May 25

STEEL Authority of India Ltd has reported a net profit of Rs 2,678 crore for the fourth quarter of 2004-05, recording an increase of 164 per cent compared to the corresponding quarter the previous fiscal.

Net profit during the year touched an all-time high of Rs 6,817 crore, marking an increase of 171 per cent, compared to Rs 2,512 crore profit the previous fiscal.

The company has also announced a final dividend of 18 per cent. Along with an interim dividend of 15 per cent announced earlier, the total dividend for the year stands at 33 per cent. The outgo towards dividend payment will be Rs 743 crore, out of which Rs 638 crore would go to the Government as the single largest shareholder.

The company's turnover during 2004-05 rose 32 per cent year-on-year to Rs 31,800 crore. Total income increased 32.84 per cent during the year to Rs 29,401.64 crore (Rs 22,132.93 crore). Speaking to reporters after announcing the results, the Chairman, Mr V.S. Jain, said that the increase in demand for steel throughout the year helped the company register all-time high sales amounting to 10.7 million tonnes.

"The company's domestic sales grew 8 per cent over the previous year to reach a level of 10.3 million tonnes. The company consciously contained exports of steel at 4.6 lakh tonnes against 11 lakh tonnes shipped during 2003-04 in order to make more steel available in the country," he said.

"SAIL's outstanding financial performance during the year has made it among the topmost profitable companies in the country from being among the largest loss makers just a couple of years ago," Mr Jain said.

For the current year, the company is targeting a 7 per cent increase in production.

Commenting on the price front, Mr Jain said that in the Indian context the prices may move up and down but demand would remain very strong.

"As far as SAIL is concerned, the company responds to changed market conditions every month," he said.

Mr Jain also pointed out that the company has been able to bring down its debts to the level of its short-term deposits, which implies that SAIL is now a zero-debt company.